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– Mizuho Securities (based on Reuters)
Pair's Outlook
After a two-week decline the USD/JPY currency pair managed to breach the descending channel's support line yesterday, also reacquiring the 111.00 mark. Nevertheless, the rally was stopped by the monthly S1, which could still cause bears to push the exchange rate lower today. Moreover, technical indicators remain in favour of the negative outcome and the Bollinger bands suggest a close in the red zone today is likely. The nearest support is the weekly S1 at 110.35, but a drop that low is doubtful, with the 110.60 level seen as the lowest intraday closing point.
Traders' Sentiment
Bullish traders' sentiment returned to its Monday's level of 72% (previously 71%). At the same time, the number of orders to acquire the Buck edged down from 66 to 63%.
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