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"U.S. retail sales will be critical for currencies. Given the recent negative trend, markets would react poorly if the 1.1 percent increase expected is missed."
- ANZ (based on CNBC)
Pair's Outlook
USD/JPY demonstrated increasing levels of volatility yesterday, with the difference between the open and close exceeding 100 pips. The US Dollar rose during the first half of the day, but in the end it closed lower, just above 120 yen. As for Tuesday, the Buck is expected to rebound, while the nearest significant resistance lies at 120.64, namely the upper Bollinger band. Meanwhile, the technical indicators are still giving mixed signals.
Traders' Sentiment
Although not as strong as yesterday, but the market sentiment among SWFX traders remains bullish. Today 70% of all positions are long. At the same time, the gap between the buy and sell orders narrowed to 54% vs 46%.
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