- TD Securities (based on FXStreet)
Although the Buck broke out of its four-week consolidation range, the wider trading range remains intact. Technical indicators are now giving bearish signals, but a tough support rests near 118.50, as it held the pair from falling since February 2015. Another set of very weak data is required to push the USD/JPY beyond this level; therefore, a rebound is possible, with the Greenback's upside border lying around the 120.00 level, also surrounded by a number of resistances. However, risks of breaking the 118.50 support also persist, which could then trigger a sharper fall towards the Jan low.
Bullish market sentiment returned to its Tuesday's level of 74%, whereas the portion of buy orders sharply dropped from 76 to 49%.