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– HIS Markit (based on Reuters)
Pair's Outlook
March rate hike expectations continued to bolster the American Dollar yesterday, allowing it to approach the key resistance around 114.60 area. From the technical perspective the USD/JPY currency pair should now make a U-turn and continue to consolidate between 111.75 and 114.75. Technical indicators somewhat confirm this, as they keep giving mixed signals, suggesting the pair is to keep consolidating. On the other hand, the recent Dollar– buying boom could cause the immediate resistance area to get breached, which would open the door for a future retest of the bearish trend-line just above 117.00.
Traders' Sentiment
Today 60% of traders are long the US Dollar, compared to 62% previously. At the same time, the number of buy orders barely changed, having risen from 55 to 56%.
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