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– Westpac (based on FXStreet)
Pair's Outlook
The US Dollar once again slid versus the Japanese currency, continuing to gravitate towards the 112.00 major level. However, a drop below the 111.60 mark, namely the 11-week low, is doubtful, as this level represents the lower boundary of the USD/JPY pair's current consolidation period. At the same time, the upper border les somewhere between 112.60 and 112.80. Consequently, the Buck now has the potential to edge approximately 65 pips higher, even though technical studies are unable to confirm this scenario; instead they suggest the American Dollar is to retest the 111.60 level, which in turn is bolstered by the weekly S1 and the lower Bollinger band.
Traders' Sentiment
Although not as strong as yesterday, but market sentiment remains bullish at 63%. The share of purchase orders declined from 62 to 47%.
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