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"The trend is still dollar positive as long as the economy performs."
- RBS Securities (based on Business Recorder)
Pair's Outlook
Although the USD/JPY declined on Tuesday, the immediate support in face of the monthly S1 was able to hold the losses. The same level is providing support today as well, but the Bollinger band keeps edging closer to the Nov low, implying that weak fundamental data could push the exchange rate down to this area if not lower. However, the Buck was unsuccessful at piercing the monthly S1 through December; therefore, potential for the US currency to rebound still exists, but with a tough resistance located circa 121.60.
Traders' Sentiment
Slightly less traders now have a negative outlook towards the US Dollar, namely 70% (previously 72%). At the same time, only 53% of all pending orders are to buy the USD, down from 60% yesterday.
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