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"The BOJ's minus rate revealed the limits of policy, providing a factor that pushed up the yen. One has to acknowledge the limited impact of interest-rate policy on currencies."
- Shinji Kureda, Sumitomo Mitsui Banking Corp (based on Bloomberg)
Pair's Outlook
The return of risk appetite and better-than-anticipated US manufacturing data caused the Greenback to erase all Monday's losses against the Yen yesterday. However, risks of edging lower again today persist, despite the USD/JPY currency pair being supported by the 20-day SMA and the weekly PP just below the opening price of 114.00. This cluster could fail to keep the pair afloat and trigger a sell-off all the way down back to the 112.00 major level. Meanwhile, technical indicators keep giving mixed signals, thus, a possibility of the Buck reaching 15.00 yen, where the monthly PP coincides with the weekly R1, exists.
Traders' Sentiment
Nearly three quarters (74%) of all open positions are now long, whereas the portion of buy orders inched up from 52 to 57%.
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