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– Societe Generale (based on Reuters)
Pair's Outlook
Even though the USD/JPY currency pair weakened on Wednesday, it still remained within its weekly trading range, namely between 117.00 and 117.90. Earlier today the pair fell victim of hard selling, causing the exchange rate to drop under the 116.00 handle. At this point the closest support is unlikely to be of any use, with all attention being on the cluster around the same 116.00 mark, where the weekly S1, the monthly PP and a support trend-line are located. However, technical studies insist the Buck is to edge higher today; given the nature of the fundamental data today, positive readings could cause the pair to recover from its intraday lows, but this scenario is highly unlikely.
Traders' Sentiment
Market sentiment is now equally divided between the bulls and the bears, while 61% of all pending orders are to acquire the US Dollar.
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