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"If U.S. data remains broadly in line with the Fed's expectations, we suspect the USD will be off to a positive start in 2016 as there is plenty of scope for rates markets to price in more Fed hikes."
- BNP Paribas (based on Reuters)
Pair's Outlook
The US Dollar suffered another loss against the Yen yesterday, due to another set of poor fundamental data. As a result, trade closed under the key support level, which is likely to lead to more USD weakness. The closest spot to limit the losses today is located around 120.20, represented by the Nov low and the Bollinger band, while the monthly S1 is now providing resistance. However, it will be rather difficult for the Buck to recover from intraday losses today, as there are no solid market movers on the Christmas day. Technical studies are also bolstering the possibility of the bearish outcome.
Traders' Sentiment
With an extra 2% points less 68% of all open positions are now short. Meanwhile, the share of buy orders dropped from 53 to 49%.
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