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- Societe Generale (based on Reuters)
Pair's Outlook
The USD/JPY currency pair remained flat yesterday, as bears were unable to hold the exchange rate below the weekly PP of 102.69. The pair is still stuck between the weekly PP and the monthly S2 today, with downside risks higher. However, according to technical studies, the Buck could remain relatively unchanged against the Japanese Yen for another day today. Ultimately, we should see a recovery take place, leading the exchange rate back towards the 109.00 major level, where the resistance trend-line of the current falling wedge pattern is located. Furthermore, an upside breakout would fully confirm the pattern.
Traders' Sentiment
Bulls keep losing numbers, as 64% of traders hold long positions today, compared to 66% on Wednesday. At the same time, three quarters (75%) of all pending orders are to purchase the Greenback.
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