© Dukascopy Bank SA
- Mitul Kotecha, Credit Agricole (based on Reuters)
Pair's Outlook
Given that the currency pair closed notably below the rising support line yesterday, there is a good chance that the downward correction will extend further from here. While a combination of the weekly S1 and the 20-day SMA appears to be too weak for that, the demand area that may succeed in stopping development of the bearish leg is formed by the monthly pivot point and the September high at 100.86/61.
Traders' Sentiment
Although yesterday traders seemed to be losing confidence in the bullishness of the U.S. Dollar, a fact that 59% of positions in the major currency pairs are long the greenback disproved validity of this idea. Particularly in USD/JPY 58% of positions are long and 42% are short.
© Dukascopy Bank SA