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"We've been expecting this [Fed's] hike for so long that by the time they do it, there's really a huge risk that this is going to be a classic 'buy the rumour, sell the fact' type of result."
- State Street Global Markets (based on CNBC)
Pair's Outlook
The USD/JPY currency pair did appreciate yesterday, but not as much as anticipated, due to some weak fundamental data. Although the nearest resistance was not reached, the Greenback still managed to stabilise above the 124.00 major level. Today's technical studies give mixed signals, while the Buck is expected to edge closer to the weekly R1 and monthly PP support cluster around 123.45. However, the bullish trend has a chance of being preserved, which would result in reaching yesterday's target around 124.45.
Traders' Sentiment
Bulls retreated for the third day, as 71% of all positions are now long, compared to 73% on Thursday. The share of purchase orders also decreased, from 69 to 56%.
© Dukascopy Bank SA