© Dukascopy Bank SA
"Despite the softer data, we think the market is going to remain focused on risks of a more hawkish Fed message next week, and risks to U.S. front-end yields remain skewed to the upside from current low levels."
- BNP Paribas (based on CNBC)
Pair's Outlook
The USD/JPY currency pair behaved almost in accordance with expectations. The Greenback plunged, but not as far as predicted, although the weekly PP was touched during the trading hours. Ultimately, the Buck stabilised just under the 20-day SMA, which should not have had sufficient strength to do so. Technical indicators are bearish, suggesting a further decline today. The weekly PP now acts as the closest support; however, a fall towards 119.25, namely the 100-day SMA, is the prospect for today.
Traders' Sentiment
Market sentiment strengthened, with the share of longs adding two percentage points up to 74%. At the same time, the buy and the sell order ratio is equal to one.
© Dukascopy Bank SA