© Dukascopy Bank SA
"In the backdrop of firmer risk sentiment, and a commodity sector-led rise in equity markets, the appeal of the ‘safe haven' JPY waned. A broad range of trading between 111.00 and 115.00 appears to be establishing itself near-term, largely influenced by shifts in global risk appetite."
- BNZ (based on WBP Online)
Pair's Outlook
The Greenback overperformed on Wednesday, as somewhat faded risk aversion pushed the USD/JPY higher. The pair almost completely erased its Tuesday's losses, but with the 20-day SMA and the weekly PP providing sufficient resistance to keep the Buck from edging higher. This area remains the immediate resistance cluster today as well, but if bulls manage to advance the US Dollar higher, gains are likely to be capped by the 114.00 major level, rather than the nearest resistance area. Technical studies are now bolstering the possibility of the positive outcome by giving bullish signals in the daily timeframe, compared to bearish ones yesterday.
Traders' Sentiment
Bulls keep dominating the market with their high percentage (74%), while the portion of purchase orders doubled from 33 to 66%.
© Dukascopy Bank SA