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- Societe Generale (based on Reuters)
Pair's Outlook
The Greenback's bullish development against the Japanese Yen on Tuesday caused the broadening falling wedge pattern to be preserved. Even though the bearish momentum could prevail today, there is a number of supports located below the 102.00 major level, which are likely to prevent the Buck from sustaining sharper losses. One of those supports is a five-month trend-line, which should ideally be the lowest border to contain the volatility. Technical indicators also suggest the USD/JPY pair is to weaken today, but strong fundamentals could be sufficient to trigger a buying-spree, leading the exchange rate above the 103.00 psychological level.
Traders' Sentiment
Bulls retreated over the day, with 66% of traders holding long positions (previously 72%). The share of buy orders skyrocketed from 45 to 78%.
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