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- Sumitomo Mitsui Trust Bank (based on Reuters)
Pair's Outlook
The USD/JPY currency pair continued to appreciate on Tuesday, easily piercing the second resistance area and even putting the third level to the test. However, the Yen received a boost earlier today, with the bearish trend regaining dominance. The pair is now likely to ignore the nearest support cluster, represented by the monthly PP and the weekly R2, and negate the most part of yesterday's gains. Technical indicators support this scenario, as they are now giving bearish signals in the daily timeframe. The 20-day SMA around 103.10 is the level to limit the losses, although a drop lower is not out of the question.
Traders' Sentiment
Today 63% of all open positions are long, compared to 68% of Tuesday. Meanwhile. The portion of buy orders dropped again, namely from 61 to 44% over the past 24 hours.
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