© Dukascopy Bank SA
"I believe the (Federal Open Market Committee) is on pace to hike come hell or high water, almost literally. They will be lifting off unless there is a real meltdown."
- Kim Rupert, Action Economics (based on Business Recorder)
Pair's Outlook
The USD/JPY failed to reach the 122.80 mark, while the immediate resistance cluster prevented the pair from advancing. The Greenback risks falling today as well, due to the lack of potential events to help the exchange rate climb over the resistance around 123.50. Immediate support is still represented by the weekly PP, monthly R1 and the 100-day SMA around 122.00, but the highest level of the cluster, namely the weekly PP, is the only one to be tested. In case the 100-day SMA is breached, the second strong demand area is located at 121.15—the 20 and 200-day SMAs.
Traders' Sentiment
Bears keep pushing forward, as 74% of all positions are now short. At the same time, the share of buy orders increased from 42 to 72%.
© Dukascopy Bank SA