‘The news [Michael Flynn’s resignation] weighed on the dollar against the yen because it’s a hard situation to understand, and also to understand what kind of broader fallout it will have.’ – Sony Financial Holdings (based on Reuters)
Pair’s Outlook
Despite all odds, the USD/JPY currency pair inched higher on Monday, breaching our bearish trend-line. An adjustment is not yet required, as a negative outcome today would still reinstate it. The 20-day SMA is the nearest support, but more attention should be paid to the weekly pivot point, which is located at 112.89. Moreover, the Buck is likely to experience trouble with further gains, as a number of strong resistance areas rests up to the 115.50 level. A successful surge beyond this mark would open the door for reaching the main target, namely the longer-term trend-line, which currently lies on top of the 118.00 level.
Traders’ Sentiment
There are 55% of traders with a positive outlook towards the US Dollar today (previously 58%). Meanwhile, the portion of purchase orders remains unchanged at 56%.
