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"Long dollar positions still look attractive for the remainder of 2015 in terms of risk/reward as the BoJ provides downside protection while the Fed's potential liftoff provides the dollar's upside."
- BAML (based on FXStreet)
Pair's Outlook
Although the Greenback appreciated against the Japanese Yen on Tuesday, a new 13-week high was not reached. The pair also failed at breaching the immediate resistance cluster, which could turn the tide today, leading the USD/JPY down to the weekly PP at 122.87. In case the weekly PP fails to hold the losses, a fall towards the cluster around the up-trend is expected. Nevertheless, the US currency has the potential to reach the second resistance just above the 124.00 level, namely the weekly R2 and the Bollinger band. Technical studies are bolstering the possibility of a surge with bullish signals.
Traders' Sentiment
Once again there are exactly three quarters of traders being short the Buck, while the share of sell orders increased from 51 to 53%.
© Dukascopy Bank SA