© Dukascopy Bank SA
"The (Japanese) trade numbers came out against a political backdrop that does not favour Japan intervening to weaken the yen, thus making it relatively easy for participants to buy back the yen."
- BBH (based on Reuters)
Pair's Outlook
As was anticipated, the USD/JPY currency pair remained close to the 110.00 level, unable to pierce the immediate resistance at the end of the previous week. Even though the Greenback is now consolidating against the Yen, the current rising wedge pattern, that is now entering a fourth week, implies a breakout to the downside, with further continuation of the bearish trend to take place afterwards. Today, however, a breakout is doubtful, as technical studies in all timeframes retain mixed signals, the exchange rate being drawn towards the 110.00 mark and the wedge's lower boundary being bolstered by the weekly PP around 109.70.
Traders' Sentiment
Nearly three quarters (74%) of all open positions are long, whereas the number of orders to acquire the US Dollar edged up from 30 to 58%.
© Dukascopy Bank SA