© Dukascopy Bank SA
- Mizuho Securities (based on Market Watch)
Pair's Outlook
With the Fed leaving its interest rate unchanged and stating that two hikes are scheduled for this year, the USD/JPY currency pair remained relatively unchanged on Wednesday. The BoJ also left its monetary policy unchanged earlier today, which caused Yen to strengthen dramatically. The sharp reaction caused volatility to stretch beyond the second support cluster, with the 104.00 psychological level somewhat managing to limit the decline. Price could still at least partially recover from this intraday low if the US fundamentals beat expectations, but we expect trade to close below the 105.00 mark.
Traders' Sentiment
Today 70% of all open positions are long, compared to 72% on Wednesday. Meanwhile, all pending orders in the 100-pip range are equally divided between the buy and the sell ones.
© Dukascopy Bank SA