- JP Morgan Chase Bank (based on CNBC)
Although the USD/JPY advanced on Tuesday, the 124.00 was not reached. Apparently, the US Dollar's bullish momentum weakened after piercing the tough resistance area around 124.40, but, nevertheless, the given cluster is now providing substantial support. As a result, the Greenback is expected to maintain its rally and climb above the 124.00 psychological level. Nonetheless, risks of falling back towards 123.00 still persist, as the Fed might provide a more dovish statement today. Meanwhile, technical indicators keep supporting the possibility of the Buck outperforming the Yen.
Traders' sentiment remains unchanged, with 74% of all positions being long. The share of purchase orders edged up from 69 to 70%.