© Dukascopy Bank SA
- Bank of Singapore Ltd. (based on Bloomberg)
Pair's Outlook
The bullish setup we mentioned in our previous reports is no longer topical. This is due to poor US data released yesterday, as a result of which the currency pair returned within the boundaries of the channel that has been forming since the last months of 2015. The immediate support is circa 101 yen, but the sell-off is likely to continue until we hit 100.70, where the monthly S1 coincides with 50% retracement of the 2012-2015 up-move. Current resistance is at 102.16, represented by the monthly pivot point.
Traders' Sentiment
Regardless of Greenback's recent underperformance percentage of longs increased to 66%, as traders attempt to buy Dollar at low prices before the currency appreciates. Meanwhile, there is still no visible difference between the amounts of buy and sell orders.
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