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– Yukio Ishizuki, Daiwa Securities (based on Reuters)
Pair's Outlook
Trump's speech yesterday boosted the US Dollar, causing the USD/JPY currency pair to recover from its intraday low of 111.75. However, the Buck was unable to post solid gains against the Yen, thus, the down-trend remains preserved. Following yesterday's events, the Greenback is likely to retain its strength and continue outperforming the Japanese currency. The closest resistance is located around 113.15, formed by the 20-day SMA, the bearish trend-line and the weekly R1, which should technically limit the gains. A breach of this area would open the door for a surge to the cluster circa 114.50, namely the upper border of the six-week consolidation trend.
Traders' Sentiment
Today two thirds (66%) of all open positions are long, compared to 65% yesterday. The share of buy orders inched up from 48 to 55%.
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