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– BNY Mellon (based on Market Watch)
Pair's Outlook
The USD/JPY pair was rather volatile on Tuesday, but failed to retain its strength by the end of the day, as trade close with the pair adding only 17 pips. Nonetheless, this was the third consecutive rally and the Buck is set for the fourth, assuming the weekly R1, which is the closest resistance, is breached. Technical indicators keep giving bullish signals, bolstering the possibility of the positive outcome today, but should the FOMC Minutes provide a dovish tone—the Greenback could retreat all the way down to 117.00, where the weekly PP coincides with the 20-day SMA.
Traders' Sentiment
Bears gained some numbers over the day, as 53% of all open positions are now short (previously 51%). Meanwhile, 67% of all pending orders are to purchase the US Dollar, compared to 51% on Tuesday.
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