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"The acknowledgement of the weak data might be at the margin, dollar negative. But the bar for hawkish surprises is now much lower than it was two or three weeks ago."
- Standard Chartered (based on CNBC)
Pair's Outlook
US Dollar dropped down versus Japanese Yen on Tuesday. The resistance cluster at 119.20 proved to be resilient enough to prevent USD/JPY from advancing. As a result, the Greenback bounced back and lost 30 pips. On Wednesday, we expect the Buck to extend its decline, while technical studies are giving mixed signs. Immediate support is located around 118.30, represented by the Bollinger band and the weekly and monthly S1s. This cluster should prevent the pair from falling too deep or reaching the 118 level today.
Traders' Sentiment
Market sentiment slightly worsened, as the share of bulls lost one percentage point. Now 71% of traders are long the Buck. The number of buy orders also decreased, from 58 to 56%.
© Dukascopy Bank SA