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"The dollar overall remains in an uptrend, even if that move pauses today. There ought to be smiles at the Federal Reserve: so far, so good for their plan to persuade markets to price in a faster pace of rate hikes."
- Societe Generale SA (based on Bloomberg)
Pair's Outlook
As was anticipated, the USD/JPY pair's volatility was limited by the 110.50 level yesterday, but the exchange rate still closed lower, namely on top of the 55-day SMA. The mentioned SMA, the rising wedge's support line and the weekly PP now form a strong cluster around the 100.00 mark, which technically should prevent the US Dollar from sustaining more losses. On the other hand, the Yen strengthened earlier today, as the Japanese vice-minister of finance stated that the BoJ intervention measures will not be implemented. According to technical studies the given pair is to edge higher, but US fundamentals are unlikely to turn overwhelmingly positive in order to boost the Buck.
Traders' Sentiment
Still 73% of all open positions are long, while the portion of buy orders edged lower, namely from 58 to 53%.
© Dukascopy Bank SA