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"There's been speculation of a big-bang easing in June or July, and that could possibly drive the yen weaker. A lot also depends on how the feedback from the Fed's action affects risk sentiment. That's going to result in a lot of choppiness in dollar-yen."
- Bank of Singapore Ltd. (based on Bloomberg)
Pair's Outlook
Once again the US Dollar weakened against the Yen yesterday, unable to climb over the 110.25 level. The 110.25 mark appears to be providing strong resistance, as the USD/JPY currency pair was unable to climb beyond that area for two weeks now. Furthermore, the rising wedge's support line was put to the test again, which could lead to an ultimate downside breakout today. Trade opened on top of the weekly PP, but in case the bearish momentum prevails, the pair could even fall below the 109.00 mark. However, technical studies imply that a bullish development is due, with the 110.25 area remaining a phantom resistance.
Traders' Sentiment
Although not as strong as yesterday, but market sentiment remains bullish at 73%, whereas the portion of buy orders slid from 53 to 48%.
© Dukascopy Bank SA