© Dukascopy Bank SA
"The Fed is still well short of the inflation half of its dual mandate...and because of this, market participants have more or less priced out the possibility of a September rate hike."
- DailyFX (based on CNBC)
Pair's Outlook
Unlike in the pair with the British Pound the Dollar appreciated versus the Yen yesterday. USD/JPY is currently testing the monthly pivot point, but we are still inclined to believe that the rate will fail to gain a solid foothold above 120.85, mainly because of the 200-day SMA that stands nearby, namely at 121.24. We consider the probability of a sell-off toward a notable support level at 118.50 as a more likely scenario.
Traders' Sentiment
An exodus of bulls ceased. The percentage of long positions is at the same level as yesterday—58%. As for the pending orders, we observed a material increase in the share of buy commands. Compared to yesterday's 44% they now take up 70% of the market.
© Dukascopy Bank SA