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"In our view, the USD should struggle to gain significant upside traction this week because U.S. interest rate expectations are unlikely to adjust higher."
- Commonwealth Bank (based on Reuters)
Pair's Outlook
The USD/JPY currency pair remained relatively unchanged over the weekend, whereas attempts of breaking out of the triangle were made. Nonetheless, the Greenback only made a few steps closer to the triangle's apex, increasing the risk of piercing the trend-line. The Buck's attempts to rebound are likely to be limited by the weekly PP and 20-day SMA, whereas the triangle's up-trend is supporting the US Dollar from below at 119.70. The barrier seems to be holding for now, although the USD/JPY might push further down to 119.04.
Traders' Sentiment
Bulls remain rather strong, taking up 62% of the market. Meanwhile, all pending orders are equally divided between the buy and the sell ones.
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