© Dukascopy Bank SA
- Barclays (based on Business Recorder)
Pair's Outlook
The Greenback failed to preserve its gains against the Japanese currency on Wednesday, ultimately closing with a several-pip decline. Nevertheless, the ascending channel pattern remains intact, with the channel's lower boundary, the weekly R1 and the monthly R2 forming immediate support circa 108.60. Meanwhile, the upper Bollinger band is the closest resistance, but is unlikely to prevent the USD/JPY pair from appreciating further. The main target is the cluster around 110.80, represented by the pattern's upper border, the weekly R2 and the monthly R3, which also remains out of reach, despite technical studies bolstering the possibility of the positive outcome today.
Traders' Sentiment
Bulls and bears broke out of equilibrium, taking up 49% and 51% of the market, respectively. The share of sell orders surged from 49 to 57%.
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