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"If it does clear above 109.50, I think it does point to a more bullish dollar set-up."
- Bank of Singapore (based on Reuters)
Pair's Outlook
The US Dollar failed to outperform the Yen on Friday, as the safe-haven status of the Japanese currency caused the pair to bounce back from the falling wedge's resistance line and close with a 40-pip slump. The 20-day SMA represented immediate resistance today, but is unlikely to prevent the USD/JPY currency pair from edging higher if the bullish momentum prevails. The second target is located around 109.60, namely the wedge's upper border and the weekly R1. Meanwhile, technical studies are giving mixed signals, suggesting that a possibility of the bearish outcome exists, but the monthly PP, which is the closest support, is now bolstered by the weekly PP and is not ready to give in.
Traders' Sentiment
Bulls remain strong, as 71% of all open positions are long (previously 72%). Meanwhile, the number of sell orders inched up from 46 to 54%.
© Dukascopy Bank SA