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USD/JPY inches closer to 124 again

© Dukascopy Bank SA
"I don't see big dollar longs being added even if the Fed hints of a September hike, because current positions already look stretched. But we have to remember that going long on the dollar is the current trend. With euro/dollar plays possibly saturated, players are turning their attention to dollar/yen."
- FPG Securities (based on CNBC)

Pair's Outlook
Last Friday, the US Dollar fell under pressure again, despite good fundamental data. The USD/JPY failed to breach the 20-day SMA at 123.61, which pushed the given pair 21 pips down. Nevertheless, the Greenback is likely to climb up today, as technical studies suggest. A serious obstacle rests around 123.80, represented by the weekly pivot point and the 20-day SMA, creating good chances of limiting the gains just like on Friday. 

Traders' Sentiment
Market sentiment received a boost, as the majority of traders now have a positive outlook towards the Buck, namely 55%. The number of buy orders also edged up, from 47 to 54%.

© Dukascopy Bank SA


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