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"Net USD longs dropped even further last week. Positions are at their lowest since June 2014 just prior to the sharp increase in USD buying in H2 2014."
- Rabobank (based on WBP Online)
Pair's Outlook
The USD/JPY currency pair remained relatively unchanged for the second day yesterday, having inched only 17 pips higher. After a sharp two-day slump at the end of the previous week, the Greenback appears to have entered a corrective bullish trend. Although gains are not substantial, the pair is expected to edge higher for the third consecutive day. Immediate resistance is represented by the 20-day SMA, the weekly and the monthly PPs around 108.50. Meanwhile, the nearest area to limit the dips, in case US Services PMI disappoints today, is located circa 105.40, namely the Bollinger band and the 20-month low, as technical studies retain mixed signals.
Traders' Sentiment
Today 71% of traders hold long positions (previously 72%). At the same time, the portion of buy orders plunged from 72 to 46%.
© Dukascopy Bank SA