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    USD/JPY traces back to 104.00

    © Dukascopy Bank SA
    "If it breaks 100, Bank of Japan intervention is possible, but in order to intervene in the markets, you have to get agreement from the United States, and at this level -- 104, 105 -- I don't think the U.S. would agree." 
    - Eisuke Sakakibara, former Finance Ministry official (based on Market Watch) 


    Pair's Outlook 
    The US Dollar managed to appreciate against the Japanese Yen on Tuesday, with risk-on sentiment returning to the markets. The weekly PP succeeded in limiting yesterday's gains and is expected to cause the USD/JPY to weaken today. The bottom target is the monthly S2 at 103.34, but the 104.00 major level might be difficult to pierce as well. According to technical studies, the pair is definitely to decline, as signals are distinctly bearish. On the other hand, Fed's Yellen could provide the Greenback with a boost, causing the weekly PP to give in and, thus, the Buck to retake the 105.00 psychological level. 

    Traders' Sentiment 
    Today 70% of traders are long the American Dollar, compared to 74% on Tuesday. The number of orders to purchase the US currency edged up from 56 to 66% over the day.
    © Dukascopy Bank SA

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