- Sumitomo Mitsui Banking Corporation (based on Reuters)
The US Dollar reached a daily high of 124.60 against the Yen yesterday, but was instantly pushed back down, where it stabilised at 124.07. Although the gains were not as large as anticipated, the 124.00 major level was still retaken. Technical indicators retain their bullish signals today, suggesting the Greenback is to extend its rally. Even though the weekly R1 resistance could be reached today, the Buck could still suffer losses and declined towards 123.63. Furthermore, the weekly PP might also play its part and provide sufficient support, causing the USD/JPY to inch higher by day's end.
Bullish traders' sentiment remains unchanged at 74% for the third day, whereas 69% of all orders are to buy the Buck (up from 64%).