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- Stephen Simonis, FXDD Global (based on Business Recorder)
Pair's Outlook
The USD/JPY currency pair edged lower on Tuesday, but, as expected, was unable to fall below the 104.00 major level, due to demand around 104.15 being sufficient to limit the losses. Earlier today the Yen weakened amid rumors of the BoJ possibly announcing more stimulus during its meeting later this week, allowing the Greenback to take the upper hand. The key resistance is located around 106.40, represented by the weekly PP, the 55-day SMA and the 38.20% Fibo, but it is uncertain whether the Buck will be able to maintain trade even above the 105.00 level, despite technical indicators retaining bullish signs. A dovish FOMC statement could cause the pair to plunge further today.
Traders' Sentiment
Now 56% of traders are long the US Dollar (previously 55%), whereas 75% of all pending orders are to acquire the US currency, up from 65%.
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