© Dukascopy Bank SA
- BNP Paribas (based on Business Recorder)
Pair's Outlook
The US Dollar managed to outperform the Japanese Yen on Tuesday, but with gains limited by the immediate resistance in face of the monthly S2. According to technical indicators, the USD/JPY currency pair is now likely to prolong its previous one-week decline, with the closest support located around 107.55, represented by the 18-month low and the Bollinger band. However, the USD now risks establishing a new low, with the second support area resting circa 106.60, namely the monthly S3 and the weekly S1. Technical indicators are bolstering this scenario with their bearish signals, but upbeat US fundamentals might still trigger a rally, causing the Buck to climb over the 109.00 mark.
Traders' Sentiment
Bullish traders' sentiment return to its last Wednesday's level of 73%, whereas sell orders are outnumbering the buy ones by only 4% points.
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