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"In terms of its short-term dynamics, the USD rally has been outpacing interest rate differentials ahead of the data in response to the firm ADP employment report and a strong employment component of the ISM services report."
- BNP Paribas (based on WBP Online)
Pair's Outlook
USD/JPY rebounded yesterday, overshooting expectations and erasing the two-day losses. The US Dollar managed to pierce through the weekly R1, tested the upper Bollinger band, and finally settled at 120.11. The Greenback keeps following the bullish pattern and is likely to rally further today, while the technical indicators are bolstering this outcome. However, this scenario might not come true if some of the major figures today miss the expectations, such as the Non-Farm Payrolls that are expected to decline.
Traders' Sentiment
The share of bullish SWFX traders lost four percentage points, and the long positions now account for 56% of the market. Meanwhile, the number of orders to acquire the Greenback went up to 73%.
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