© Dukascopy Bank SA
"There is a widening perception in the market that the strong dollar is becoming a tangible drag on U.S. exports, and this was reinforced by the recent Q1 2015 GDP release. However, the longer-term perspective remains that the U.S. is on track to deliver a rate hike, most likely in September."
- BNP Paribas (based on Reuters)
Pair's Outlook
Last Friday, the US Dollar overperformed, as it advanced against the Japanese Yen, easily breaching nearest resistances. Furthermore, the Greenback even managed to overcome the 120 psychological level, afterwards settling at 120.18. Today the USD/JPY currency pair is expected to rise again, with immediate resistance located at 120.42, namely the Bollinger band; however, a stronger cluster rests around 120.75. Meanwhile, technical studies remain mixed in the shorter timeframe, while the longer ones retain bullish signs.
Traders' Sentiment
Market sentiment worsened again, as only 66% of traders are now long the Buck (previously 72%). At the same time, the number of buy commands declined from 65 to 59%.
© Dukascopy Bank SA