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"The dollar is sensitive to U.S. interest rates and U.S interest rates are lower now than they were after we got the jobs data."
- Brown Brothers Harriman (based on CNBC)
Pair's Outlook
Although there still seems to be a chance of the 200-day SMA acting as the support, the daily indicators suddenly turned heavily bearish. If this is true and the price falls, there is also a tough demand area at 0.8886/73, which has proven its strength on the first day of July. Should these levels both be broken, there will be a high probability of the U.S. Dollar subsequently falling through the monthly pivots towards the 2014 low at 0.87.
Traders' Sentiment
Right now three out of four market participants are holding bullish views with respect to USD/JPY—75% of open positions are long and merely 25% are short. Yesterday the percentage of proponents of a rally was slightly lower—73%.
© Dukascopy Bank SA