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"If U.S. data begins to positive surprise once more, the market will quickly jump back on to the 'Buy USD' bandwagon."
- NAB (based on Reuters)
Pair's Outlook
On Wednesday the USD/JPY cross attempted to decline, but was unable to breach the 20-day SMA. As a result, the losses were not as severe, the pair lost only 11 pips before settling just under the weekly PP. Meanwhile, the technical indicators are giving mixed signals, although the majority of them is bullish. The Buck is likely to regain momentum, whereas any decline will be short-lived. The pair also might meet resistance, namely the weekly R1 at 119.50.
Traders' Sentiment
Since yesterday the market sentiment remains unchanged, as bulls still prevail over bears with 59% of the market. At the same time, the number of buy orders contracted eight percentage points, and now they account for 61% of all commands around the spot.
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