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- Gaitame.com Research Institute Ltd. (based on Bloomberg)
Pair's Outlook
The USD/JPY currency pair plunged on Friday for the two main reasons: the BoJ failing to deliver and the a lot weaker-than-expected US GDP figures. As a result, the pair reached a bottom of 102.00, erasing all gains for the previous three weeks. Downside risks persist, with the nearest significant area to limit the losses located only around 100.50, formed by the 50.0% Fibo, the weekly S1 and the Bollinger band, which prevented the pair from falling deeper down in the beginning of July. However, a correction is the base case scenario, but with gains most likely limited by the 103.00 mark, also reinforced by the weekly and the monthly PPs.
Traders' Sentiment
Bulls remain in control, taking up 58% of the market (previously 57%). Meanwhile, the share of sell orders increased from 31 to 59%.
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