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- Koji Fukaya, FPG Securities (based on Business Recorder)
Pair's Outlook
Once again the USD/JPY pair failed to reclaim the 105.00 level, which resulted in a rather sharp decline of 66 pips yesterday. Downside volatility on Tuesday was limited by strong demand around 104.00, formed by the weekly S1, monthly PP and 20-day SMA, which are also providing strong support today. Technical studies keep giving bullish signals, but it is uncertain whether the Buck will be able to outperform the Yen. The bottom level today is the 103.40 one, namely the area that kept the pair elevated during the past three weeks. At the same time, hawkish FOMC statement today could cause the Greenback to negate yesterday's losses and approach the 105.00 mark once again.
Traders' Sentiment
Bears keep gaining numbers, as 58% of all open positions are short today (previously 57%). The share of buy orders slid from 56 to 48%.
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