© Dukascopy Bank SA
"With the Fed's rate hike at the end of 2015, a new phase of divergence is at hand...we expect the Obama dollar rally to continue in 2016."
- BBH (based on Reuters)
Pair's Outlook
The US Dollar retreated from intraday gains on Monday, as an unexpected sell-off pushed the currency below the immediate support. Nevertheless, trade closed with the USD/JPY remaining relatively unchanged (losing only seven pips), but with technical indicators pointing to another possible decline today. The Bollinger band shifted significantly lower, suggesting the exchange rate could drop to around 120.50, while the monthly S1 keeps providing immediate support. Meanwhile, the strong cluster around 121.60 is likely to limit gains in case fundamental data boosts the Greenback.
Traders' Sentiment
Market sentiment remains bearish, but at 72% (previously 74%). There are now 2% points more orders to buy the Buck, namely 60%.
© Dukascopy Bank SA