- Mitsubishi UFJ Morgan Stanley (based on Bloomberg)
Although USD/JPY closed above the resistance at 120 on Wednesday, it took a major hit yesterday, retreating all the way back to 119. Nevertheless, the outlook with respect to the US Dollar is optimistic: the technical indicators are bullish and there is a dense demand area between 119 and 118. However, in case the selling pressure intensifies, additional cluster of supports is emerging around 115.50 (100-day SMA, monthly S1 and 38.2% Fibo).
A decline in Buck's value did not discourage the bulls, as they remain in a majority with 58% of the market. At the same time, there are now (81%) relatively more commands to purchase the Dollar than yesterday (76%).