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"The renewed fall in the manufacturing PMI in June provides additional evidence that activity in the sector may have fallen in the second quarter."
- Capital Economics (based on WBP Online)
Pair's Outlook
US Dollar advanced against Yen on Tuesday, despite disappointing fundamental data. Yesterday's gains were limited by the 20-day SMA around 123.85, as well as the weekly R1. Although technical indicators keep giving mixed signals, we still expect the Greenback to edge higher today. This time the 124 major level is likely to be crossed, with the next significant resistance located only at 125.19; however, the Buck will doubtfully reach that high and instead stabilise around 124.50, as that area prevented the rally last week.
Traders' Sentiment
The share of longs inched up two percentage points up to 62%, whereas the number of commands to buy the US currency declined from 54 to 60%.
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