USD/JPY struggles to remain above 104.00

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"China trade data was weak, which seems to have increased risk aversion, that explains the yen strength. The weak dollar is probably a combination of the Fed minutes not adding anything new, and yen strength brought about from weaker sentiment." 
- St. George Bank Ltd. (based on Bloomberg) 

Pair's Outlook 
The American Dollar appreciated against the Japanese Yen on Wednesday, beating expectations and easily climbing over the 104.00 level. The second resistance area managed to contain yesterday's volatility, which also caused the USD/JPY pair to make a U-turn. Meanwhile, the monthly R1 and the 100-day SMA form immediate support around 103.50, which should prevent the pair from edging lower if bears remain dominant. Technical indicators are unable to confirm this outlook, as they are giving bullish signals in the daily timeframe, suggesting that a close above 104.00 is still possible. 

Traders' Sentiment 

For the second day in a row 57% of all open positions are long, whereas the portion of orders to sell the US Dollar increased from 51 to 57%.
© Dukascopy Bank SA

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