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- Yukio Ishizuki, Daiwa Securities (based on Market Watch)
Pair's Outlook
Relatively strong US data yesterday helped the Greenback to strengthen against the Yen, therefore, to preserve the bullish trend. Moreover, the USD/JPY currency pair managed to reclaim the 105.00 major level yesterday, which was bolstered by the weekly R2. Now the pair faces another strong resistance around 105.50, represented by the Bollinger band and the weekly R3. Furthermore, for the first time this week technical indicators in the daily timeframe are no longer giving bullish signals, adding weight to the bearish side of the scales. Consequently, the up-trend around 104.50 is likely to be the bottom floor, also reinforced by the weekly R1.
Traders' Sentiment
Traders' sentiment shifted to the bearish side today, as 52% of all open positions are short. The portion of buy orders slid from 56 to 55%.
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