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USD/JPY stuck around 124.40, awaits inflation data

© Dukascopy Bank SA
"Robust job creation, high corporate profits, favorable financing conditions and pent-up demand all point to higher [US] GDP growth."
- Moody's (based on WBP Online)

Pair's Outlook
The USD/JPY remained relatively unchanged on Tuesday, as the pair lost only five pips. The experienced volatility was contained by the 20-day SMA and the weekly PP, but a break to the downside is expected today. The main gauge of a decline is the inflation fundamental data, as weak figures are likely to delay the Fed's interest rate hike, thus, pressuring the Greenback. The 124.00 major level could be pierced again, while the 123.65 support cluster should limit any substantial losses if those occur. A rally towards 125.00 is not out of the question, as technical studies suggest.

Traders' Sentiment
Bulls gained some numbers, as 66% of all positions are long today. Meanwhile, the share of buy orders increased from 58 to 64%.

© Dukascopy Bank SA


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