‘Aside from employment, we’ve seen some negative surprises in recent U.S. data while the Fed marches ahead to a June rate hike. I think the gap between the two will eventually bring down the dollar.’ – Bank of Tokyo-Mitsubishi UFJ (based on Business Recorder)
Pair’s Outlook
Not only did the USD/JPY pair manage to recover from its intraday low yesterday, but even establish a new seven-week high of 113.30. The Greenback refuses to give up the bullish momentum, exploiting the recent recovery further, now aiming to reclaim the 114.00 major level. A successful attempt to reach this area is still likely to be short-lived, amid a tough resistance cluster located a few pips higher. Furthermore, assuming the given pair completely broke out from trading within the descending channel’s borders, continued positive outcomes are nothing out of the ordinary, which could even lead to reaching a larger scale down-trend, currently located around 117.00.
Traders’ Sentiment
Bears keep gaining numbers, as 63% of all open positions are now short. Meanwhile, the share of sell orders remains unchanged at 52%.
