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- Eisuke Sakakibara, Japan's former top currency official (based on Bloomberg)
Pair's Outlook
Even though the US Dollar slumped more than 400 pips on Wednesday, excessive profit-taking caused the Buck to not only fully recover from those losses, but to even close trade with a 50-pip rally by the end of the day. Today technical studies keep suggesting the USD/JPY pair is to prolong the gains, but a bearish correction is still expected to take place. The Bollinger band around 105.73 is the closest resistance, also indicating the most highest possible level the Greenback can reach during the day. At the same time, the nearest support rests at 104.71, but the 105.00 psychological level is the main intraday target.
Traders' Sentiment
Bulls retreated over the past 24 hours, being that there are 60% of long positions today (previously 65%). Meanwhile, the portion of purchase orders decreased from 73 to 46%.
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