© Dukascopy Bank SA
"If broader risk aversion is steadying, as we suspect, we have to think the yen is at risk of giving back more of its recent strength."
- Scotia Capital (based on Reuters)
Pair's Outlook
The US currency remained unchanged against the Japanese Yen on Wednesday, as demand at 113.88 proved to be sufficient to keep the pair elevated. Technically, we might see a rebound, with the exchange rate touching the 115.00 level. The nearest resistance leaves enough room for a rally beyond 116.00; however, impetus to push the pair that high is absent. Nonetheless, the Buck lacks the strength to exit its current bearish trend, while daily and weekly technical studies keep giving bearish signals, suggesting the USD/JPY currency pair is to attempt and breach the immediate support area.
Traders' Sentiment
Traders' sentiment keeps improving, with 69% of traders being long the Buck, while the share of buy orders skyrocketed from 23 to 68%.
© Dukascopy Bank SA