- Rabobank (based on Business Recorder)
Due to a bank holiday in the US and lack of market movers, the USD/JPY currency pair remained almost completely unchanged yesterday. However, the situation is expected to change today, even though technical indicators keep giving mixed signals in the daily and the weekly timeframes. The risk-off sentiment is also present on the markets, therefore, providing the Yen with a small boost, but sufficient to cause the Greenback to pierce the immediate support, namely the weekly PP at 102.46. Consequently, the pair could put the eight-month support line to the test, which in turn is reinforced by the weekly S1.
Market sentiment gradually improved over the day, as 73% of traders hold long positions today (previously 52%). At the same time, the number of orders to sell the Buck increased from 37 to 63%.