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- Global-info Co. (based on Reuters)
Pair's Outlook
On Monday the USD/JPY pair reached the upper border of its consolidation trend, meaning that there was a 30-pip rally. Technically, the exchange rate is expected to make a U-turn now and begin moving towards the lower boundary around 103.30. However, according to technical indicators a bullish development is possible, where the weekly R1 at 104.43 is seen as the key resistance. In case bears do prevail, the immediate demand area will be the cluster around 103.75, formed by the weekly PP and the monthly R1, while the consolidation trend's lower border is being bolstered by the weekly S1, the 20 and the 100-day SMAs.
Traders' Sentiment
Bears retreated again on Tuesday, as only 57% of all open positions are long today, compared to 59% yesterday.
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