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- Societe Generale (based on Reuters)
Pair's Outlook
The USD/JPY currency pair almost fully negated early Monday's bearish gap yesterday, managing to return within the borders of the broadening falling wedge pattern. Technically, from this point on only more bullish momentum should follow, but that still might not be the case, as technical indicators in all timeframes retain bearish signals. As a result, the support line of the wedge might be pierced again, leaving the Bollinger band and the monthly S3 circa 101.30 to act as the second strong demand area. A breach lower would imply for the Buck to reach the 100 yen level, unless the 50.0% Fibo at 100.72 causes a rebound.
Traders' Sentiment
Market sentiment remains unchanged over the day, as 72% of traders still hold long positions. The portion of buy orders, on the other hand, edged ten percentage points lower down to 45%.
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