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"The disappointing data from China is weighing on risk sentiment and pushing the dollar lower against the yen."
- Nomura (based on CNBC)
Pair's Outlook
On Tuesday the risk-off sentiment sparked demand for the safe haven Yen, causing the USD/JPY currency pair to reach the second support level, namely the weekly S1. Today this area acts as the immediate support, whereas the 20-day SMA and the weekly PP form a resistance cluster around 113.35. Nevertheless, the bearish momentum is expected to prevail, but with the 112.00 psychological level limiting the dips. The Bollinger band is bolstering this area, but volatility might even edge closer to the 111.00 mark. Meanwhile, technical studies also suggest the negative outcome is most probable.
Traders' Sentiment
Three quarters (75%) of all open positions are once again long (previously 71%). At the same time, there are 67% of all pending orders to sell the Greenback, compared to 51% on Tuesday.
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