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– JP Morgan (based on Market Watch)
Pair's Outlook
Demand, represented by the 117.00 major level, appears to have been sufficient to prevent the USD/JPY pair from suffering more losses yesterday, as it did during the previous week. The Buck added 31 pips against the Japanese Yen, successfully climbing over the immediate resistance, namely the weekly PP. The pair now has the potential to post more gains, and technical indicators are bolstering this possibility, as they retain bullish signals. However, the nearest resistance, formed by the weekly R1, is unlikely to be reached due to lack of impetus. Furthermore, the 118.00 mark is expected to prevent further appreciation, as it did last week.
Traders' Sentiment
For the third consecutive day 54% of traders remain short the US Dollar. At the same time, there are 56% of orders to purchase the Buck.
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