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- Masashi Murata, BBH (based on Reuters)
Pair's Outlook
Despite poor ADP data on Wednesday, the US Dollar still managed to outperform the Japanese Yen, with the immediate resistance cluster limiting the gains. However, the USD/JPY pair is now likely to weaken, amid the supply area around 103.75 being too difficult to breach. Moreover, there is no impetus present today, which would be sufficient for a surge beyond the nearest resistance, thus, a slight downside correction is the most probably outcome. A drop back under 103.00 is also doubtful, but in case bears do trigger such a sharp decline, the weekly R2 at 102.84 is to limit the losses. Meanwhile, technical studies are unable to confirm the outlook, as they are giving mixed signals.
Traders' Sentiment
Today 58% of all open positions are long, compared to 60% on Wednesday. The number of sell orders increased from 36 to 53%.
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