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USD/JPY attempts to erase Wednesday's losses

© Dukascopy Bank SA
"The dollar is rising ahead of U.S. nonfarm payrolls report, though gains are likely to be capped until investors can see if the numbers confirm their expectation."
- Ayako Sera, Mitsui Trust Bank (based on Reuters)

Pair's Outlook
Strong US fundamental data failed to provide sufficient impetus to breach the 114.00 psychological level, which resulted in the USD/JPY's 50-pip loss yesterday. However, risk-on sentiment appears to be prevailing today, creating a possibility for the pair to negate Wednesday's losses and even establish a new 13-day high. The closest resistance is represented by the 20-day SMA at 113.67, while the second target is located at 115.00, namely the weekly R1 and the monthly PP. Nonetheless, according to the pair's three-week consolidation trend and mixed technical studies, we might observe the Buck decline beyond 113.00 yen—where the weekly PP rests.

Traders' Sentiment
Bulls remain strong, taking up 73% of the market (previously 74%), whereas the share of purchase orders dropped from 57 to 49%.

© Dukascopy Bank SA


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