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"There still remain the aftereffects of the BOJ's inaction."
- Mitsubishi UFJ Morgan Stanley (based on Market Watch)
Pair's Outlook
The US Dollar experienced another relatively sharp decline on Friday, falling below the 18-month low of 107.63. The Greenback now could undergo a corrective rally, despite the Bollinger band providing immediate resistance around 106.25, just above the opening price. Meanwhile, technical indicators are giving mixed signals in the daily timeframe, implying that the possibility of bullish development exists. However, weak US fundamentals might cause the USD/JPY currency pair to weaken for the third consecutive time and fall under the 106.00 psychological level.
Traders' Sentiment
There are 72% of traders holding long positions today, opposed to 74% on Friday. At the same time, 55% of all open orders are to sell the American Dollar, compared to 57% at the end of the previous week.
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