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"We see good opportunity now to hedge against U.S. dollar strength after the strong rally in Asian currencies in the first quarter."
- Credit Suisse (based on Bloomberg)
Pair's Outlook
Amid the return of risk-on sentiment, the US Dollar managed to strengthen against the Japanese Yen on Monday, even stabilising above the immediate resistance cluster. The weekly PP and the monthly S2 are now supporting the USD/JPY currency pair, but risks of another decline taking place persisting. In case demand around 108.70 is weak and the Greenback fails to climb over the 109.50 level, the pair will once again face the 18-monh low and the weekly S1 circa 107.65. On the other hand, if the bullish momentum prevails, the weekly R1 will be the first intraday target. Technical studies, however, are in favour of the bearish scenario.
Traders' Sentiment
Bullish market sentiment returned to its previous Tuesday's level of 70%, whereas the share of buy orders skyrocketed from 17 to 76%.
© Dukascopy Bank SA