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"Now that U.S. GDP growth has come lower than expected, markets are paying more attention to other U.S. data, to be released in the coming days."
- Mizuho Securities (based on Reuters)
Pair's Outlook
USD/JPY opened the week with a large downside gap (60 pips), but it has already been closed, and thus an extension of a rally is unlikely. Yet another ‘sell' sign is a cluster of resistances at 118, which is mainly created by the weekly and monthly pivots points, among the other studies. There now may well be a sell-off down to 116.00/115.50 region, where the price should be underpinned by the 38.2% Fibo and monthly S1.
Traders' Sentiment
The bullish sentiment keeps weakening, as the portion of longs at the moment is at 59%, while the 10-day average is at 63%. At the same time, the share of commands to purchase the Buck went up from 51 to 56%.
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