"I foresee a major reversal on the yen. In the second half of the year, we could see dollar/yen go back to between 120-125 yen."
- Juan Perez, currency strategist at Tempus Consulting (based on Business Recorder)
Pair's Outlook
[ANNOUNCE]Even though the USD/JPY currency pair appreciated yesterday, the impetus provided was insufficient for the Buck to climb over the 109.00 mark.[/ANNOUNCE] There is still room for another rally towards the resistance line of the falling wedge pattern, also reinforced by the weekly R3, with a possibility of a breakout from the pattern; however, technical indicators are unable to confirm that. Consequently, the Greenback could sustain another decline towards 108.00, despite being supported by a tough cluster, represented by the 20-day SMA, the weekly R2 and the monthly PP.
Traders' Sentiment
Market sentiment slightly worsened over the day, but remains bullish at 72% (previously 74%). Meanwhile, the portion of orders to acquire the US Dollar inched up from 49 to 54%.