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"I think people are waiting to see the U.S. CPI and the Fed minutes - that will provide some direction for the dollar."
- BMO Capital Markets (based on Reuters)
Pair's Outlook
Even though the USD/JPY currency pair experienced some volatility, it still remained contained within the borders of the 20-day SMA and the weekly PP. Ultimately, the US Dollar inched eight pips higher and stabilised at 124.45, just in front of the weekly PP. The pivot point keeps providing resistance today and is likely to cause the Greenback to bounce back, unless the US fundamentals surprise to the upside. Meanwhile, the 20-day SMA keeps supporting the given pair from below, whereas technical studies suggest the Buck is to extend its rally.
Traders' Sentiment
Although not as strong as before, but market sentiment remains bullish at 62%. The portion of buy orders declined from 62 to 58%.
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