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- Credit Suisse (based on Reuters)
Pair's Outlook
The Fed put only more pressure on the Greenback yesterday, causing it to weaken against the Japanese Yen. Ultimately, the pair suffered a 138-pip loss, after having reconfirmed the one-year down-trend. However, according to technical studies, more bearish momentum is likely to follow. This is not surprising, as the USD/JPY pair breached a tough support cluster around 100.60. On the other hand, the Buck now faces the 100.00 psychological level, which could still limit the losses, as a strong impetus is required for the Yen to keep outperforming the Buck. In case the 100.00 mark gives in the next targets will be the weekly S3 at 99.44 and the June low of 99.03.
Traders' Sentiment
Today 63% of traders are long the US Dollar (previously 61%). At the same time, the share of buy orders inched up from 54 to 60%.
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