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- Shusuke Yamada, chief FX strategist at Merrill Lynch Securities (based on Market Watch)
Pair's Outlook
The US Dollar managed to overcome the Japanese Yen again on Friday, climbing back above the 104.00 major level. Technical studies once again suggest the pair is to keep edging higher, with the nearest area to limit the gains located only around the 105.00 major level, represented by the weekly R1 and the Bollinger band. A return under 104.00 seems doubtful, as a relatively strong demand area rests just under that mark, which is likely to prevent the USD/JPY pair from falling deeper down. Furthermore, the Greenback has been outperforming the Yen for three weeks straight now, and no event is expected to break this trend today.
Traders' Sentiment
The share of bulls and bears barely changed over the weekend, as they now take up 63% and 37% of the market, respectively. At the same time, the portion of orders to buy the Buck increased from 47 to 51%.
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