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"The pair however, is not yet able to confirm a break above the critical psychological figure, weighed by nose-diving stocks. Nevertheless the technical bias is now bullish, as the pair finally broke above the 61.8% retracement of its latest daily fall at 109.55, now the immediate support."
- Valeria Bednarik, FXStreet
Pair's Outlook
As was first anticipated, hawkish FOMC Meeting Minutes triggered another USD/JPY rally yesterday, which led to the breakout from the falling wedge pattern. Moreover, the pair retook the 110.00 major level, now finding itself stuck between the weekly R1 from the downside and the cluster, represented by the 55-day SMA and the monthly R1, from the upside. Technical indicators are now giving bullish signals, suggesting that another rally is likely to take place. In case the immediate resistance, which is not far from today's opening price, is pierced, the next target will then be the weekly R2 at 110.91.
Traders' Sentiment
Although not as strong as yesterday, but market sentiment remains bullish at 73%. At the same time, the number of orders to sell the American Dollar increased from 61 to 68%.
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