© Dukascopy Bank SA
"Central banks are all hoping the Fed's imminent tightening will weaken their domestic currencies against the greenback. They're holding back on meeting the market's expectations for further easing."
- Royal Bank of Scotland (based on Business Recorder)
Pair's Outlook
The tough resistance cluster prevented the USD/JPY from posting serious gains on Thursday. Although the pair remains under the pressure of the immediate resistance cluster, the set of fundamental data could provide sufficient impetus for the Buck to edge higher. In this case the cluster, represented by the monthly PP and weekly S1 at 122.36, should limit the gains. Nevertheless, the Greenback remains under the risk of falling even deeper, with the closest target to hold the dips resting at 122.99, a breach of which should trigger an even sharper sell-off towards the Nov low at 120.25.
Traders' Sentiment
Bulls are slowly gaining numbers, as there are only 66% of bearish traders today. The number of sell orders edged up from 58 to 59%.
© Dukascopy Bank SA