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"The relationship between the Japanese stock market and the U.S. dollar/Japanese yen (pair) has been strange since mid-February."
- UBS Group AG (based on Reuters)
Pair's Outlook
USD/JPY pair bounced back on Tuesday after a three-day rally. The pair tested the weekly PP, which proved to be strong enough to stop the currency from declining further. Moreover, at the end of the trading day the Greenback settled between the weekly PP and R1 at 119.71, as was anticipated. The daily technical indicators are emitting neutral signals; hence, the Buck is likely to trade in the same range as yesterday (between the weekly PP and R1), unless some data release today surprises with unexpected results.
Traders' Sentiment
The SWFX market sentiment improved, as 61% of all positions are now long (59% yesterday). The number of buy orders surged even more, from 63% to 71%.
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