- BNP Paribas (based on Reuters)
The American Dollar succeeded in outperforming the Yen yesterday, amid strong readings of US fundamental data. Even though the day ended with a USD/JPY rally, none significant level was breached. Through all of the week the pair maintained trade between the cluster at 117.70 providing support and the weekly PP at 113.24 acting as a resistance. With technical studies retaining distinctly bearish signals, the Greenback is expected to decline and remain within the borders of the mentioned levels. However, a positive surprise in fundamentals could trigger a rally towards 114.00.
Market sentiment is strongly bullish, as 73% of all open positions are long. The portion of buy orders remains unchanged at 51%.