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"We believe foreign portfolio investment and FDI outflows by Japanese investors and corporates should sustain JPY weakness into next year."
- Nomura (based on FXStreet)
Pair's Outlook
The tough resistance cluster around 121.00 held its ground, although the USD/JPY did reach the highest point of the cluster, namely the 200-day SMA. Nevertheless, the pair was pushed back and remained relatively unchanged over the day, adding only 13 pips. The Yen remains under pressure and is likely to allow the Buck to rise again today; however, we should not rule out the possibility of slump, as the group of levels around 121.00 keeps blocking the path. Furthermore, technical studies remain bearish, but downside volatility refuses to drop below 120.00 for the second day in a row.
Traders' Sentiment
Although not as strong as yesterday, but market sentiment remains bullish at 64%. The share of buy orders declined from 51 to 48%.
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