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"The dollar has been supported by the view that the Fed will start raising rates this year... If there is a change to that assumption, markets are likely to respond."
- Societe Generale (based on Market Watch)
Pair's Outlook
Although the US Dollar managed to rebound from the trend-line yesterday, gains were limited by the 20-day SMA, rather than the expected cluster near the 121.00 psychological level. The USD/JPY appears to be anchored around the major level of 120.00, as it keeps returning there for almost two weeks now after any shallow gains. However, instead of closing trade around this area, the Greenback risks breaking out of the triangle pattern in either direction, as it has nearly reached the pattern's apex.
Traders' Sentiment
For the third consecutive day the share of bulls remains unchanged at 59%. Meanwhile, In the 100-pip range from the spot the number of purchase orders gained one percentage point, up to 57%.
© Dukascopy Bank SA