- Bank of Tokyo-Mitsubishi UFJ (based on Market Watch)
Upon reaching the 111.00 yen, the US Dollar managed to regain the bullish momentum and close trade with a seven-pip rally yesterday. The support cluster circa 111.70, namely the monthly S3 and the weekly S1, once again proved to be strong, but could still give in today. Technical studies are now giving distinctly bearish signals in the daily timeframe, implying that the USD/JPY could fall back towards the 111.00 mark or lower—towards the weekly S2 at 110.67. In case bulls take over the market, we might see the nearest resistance in face of the weekly PP overcome.
Although not as strong as yesterday, but market sentiment remains bullish at 71% (previously 74%).