"Investors will find it difficult to take strong positions on one side. The dollar will unlikely gain much against the yen in either case ."
- Minori Uchida, Bank of Tokyo-Mitsubishi UFJ (based on Reuters)
Pair's Outlook
A set of poor fundamentals caused the American Dollar to retreat from its intraday high and close trade relatively unchanged against the Yen, adding only 20 pips on Thursday. The USD/JPY currency pair remains supported by the weekly PP at 113.00, which is now also bolstered by the 20-day SMA. As a result, we expect the bullish momentum to prevail, but gains are likely to be limited by a strong resistance area around 115.00, represented by the weekly R1, the monthly PP and the Bollinger band. On the other hand, daily technical indicators are now giving bearish signs, suggesting that with sufficient impetus from weak NFP data the nearest support could be pierced.
Traders' Sentiment
Exactly three quarters of all open positions are long, while the share of purchase orders returned to its Wednesday's level of 57%.
- Minori Uchida, Bank of Tokyo-Mitsubishi UFJ (based on Reuters)
Pair's Outlook
A set of poor fundamentals caused the American Dollar to retreat from its intraday high and close trade relatively unchanged against the Yen, adding only 20 pips on Thursday. The USD/JPY currency pair remains supported by the weekly PP at 113.00, which is now also bolstered by the 20-day SMA. As a result, we expect the bullish momentum to prevail, but gains are likely to be limited by a strong resistance area around 115.00, represented by the weekly R1, the monthly PP and the Bollinger band. On the other hand, daily technical indicators are now giving bearish signs, suggesting that with sufficient impetus from weak NFP data the nearest support could be pierced.
Traders' Sentiment
Exactly three quarters of all open positions are long, while the share of purchase orders returned to its Wednesday's level of 57%.