"At the very least the view is that Trump's economic policies will be delayed over this [latest US political turmoil], and the dollar is being sold."
– Matsui Securities (based on The Business Times)
Pair's outlook
The USD/JPY pair experienced a rather devastating blow on Wednesday, losing more than 200 pips amid continued political turmoil in the US. After such a large slump the Buck is likely to undergo a bullish correction, unless political pressure keeps weakening the Greenback. Moreover, the monthly PP and the weekly S3 around 110.45 are providing rather strong support, which could be sufficient for a recovery to prevail. The nearest resistance rests at 111.40, namely the weekly S2, most likely marking the intraday high. The base case scenario is a close somewhere between 110.50 and 111.50.
Traders' sentiment
There are 61% of traders holding short positions today (previously 66%), while the share of buy orders added 10% points, having risen to a total of 59%.
| Sentiment | Today | Yesterday | 5 days ago | |
| Positions | -22% | -32% | -30% | |
| Orders | 18% | -2% | 4% | |
| Indicator | 1D | 1W | 1MN | |
| MACD (12; 26; 9) | Buy | Buy | Sell | |
| RSI (14) | Sell | Neutral | Neutral | |
| Stochastic (5; 3; 3) | Sell | Sell | Sell | |
| ADX (14) | Neutral | Neutral | Neutral | |
| CCI (14) | Sell | Sell | Neutral | |
| AROON (14) | Buy | Buy | Buy | |
| Alligator (13; 8; 5) | Buy | Buy | Sell | |
| SAR (0.02; 0.2) | Buy | Buy | Sell | |
| Aggregate | → | ↗ | ↘ | |