© Dukascopy Bank SA
"Heading in to the FOMC, it's fair to say that market consensus is that there will be no change, but if there's any risk, it would be towards a hike, so therefore, intuitively, if you needed to put your cash somewhere, your safest bet would be the dollar today."
- State Street Global Markets (based on Reuters)
Pair's Outlook
Neither the 55-day nor the 200-day moving average was able to prevent an extension of the decline, meaning the US Dollar is likely to weaken even more in the next few days. The floor is now seen around the mark of 120 yen, where the monthly PP joins forces with the weekly S1 and 20-day SMA. However, should the bears overpower the bulls, the price will be inclined to dive considerably deeper, down to 118.50, namely the monthly S1.
Traders' Sentiment
The sentiment continues to worsen. The percentage of long positions fell from 49 to 46%. As for the orders, the buy commands remain in a majority, but during the last 24 hours their advantage has contracted from 28 to 22 percentage points.
© Dukascopy Bank SA