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"A clearer picture of (the first quarter) is coming together now, and it's not looking like a particularly strong quarter for the U.S."
- Westpac Banking Corp. (based on Reuters)
Pair's Outlook
Even though the USD/JPY currency pair closed trade at the descending channel's resistance line, upside risks are now higher. A failure to reacquire the bearish momentum today is to lead to the breakout of the channel, with the closest resistance located at 113.85, represented by the weekly R1. In case the immediate resistance is pierced, we should then see the Buck retake the 114.00 yen level and eventually put the tough cluster around 114.75 to the test. However, due to mixed technical indicators in the daily timeframe, there is a possibility that Fed Yellen's dovish statement will push the pair lower towards the weekly PP at 112.53, therefore, preserving the bearish channel.
Traders' Sentiment
Today 71% of traders hold long positions (previously 74%), while all pending orders are equally divided between the buy and the sell ones.
© Dukascopy Bank SA