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- Dominic Bunning, HSBC (based on Business Recorder)
Pair's Outlook
Relatively weak US inflation data yesterday caused the USD/JPY pair to negate all intraday gains and close trade with only a two-pip loss. The Greenback appears to be gravitating towards the 114.00 major level, thus, a positive outcome today would not be a surprise. Moreover, technical indicators keep suggesting that a bullish development is the most probable outcome. In case bulls do prevail, gains are unlikely to exceed the 114.20, where a tough psychological resistance is located. On the other hand, there is a decent chance of a sell-off taking place, with the exchange rate seen falling as low as 103.40.
Traders' Sentiment
Bears keep losing numbers, as 61% of all open positions are long today (previously 62%). The portion of buy orders barely changed as well, having risen from 53 to 54% over the last 24 hours.
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