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"Today we saw people taking profits on their bets for now. But the dollar remains weak and looks likely to fall further in the near future."
- a trader at a major Japanese bank (based on Reuters)
Pair's Outlook
After more than a week of declines the USD/JPY remained almost completely unchanged on Monday, indicating a possible trend reversal. The 18-month low, which is now bolstered by the Bollinger band, appears to have provided sufficient support for a rebound. The Greenback is now likely to edge higher, but with the monthly S2 and the weekly PP still forming a rather strong resistance area around the 109.00 psychological level. Technical studies, on the other hand, are giving mixed signals, implying that the given pair could remain relatively unchanged for the third consecutive time today.
Traders' Sentiment
There are 70% of traders being long the US Dollar, compared to 72% on Monday. At the same time, the number of orders to sell the American Dollar grew larger, taking up 58% of the market (previously 54%).
© Dukascopy Bank SA