‘With this [expectations of the newly-elected South Korean President to negotiate with North Korea] in the background, as well as the present uncertainty in the U.S., the dollar will trade heavily today below the 114-yen level.’ – Daiwa Securities (based on Reuters)
The USD/JPY currency pair surprised with its performance once again, having breached the immediate resistance, thus, stabilizing above 114.00. However, due to the recent almost constant three-week rally, a bearish correction is bound to take place sooner or later, but according to technical indicators—today is no such case. With the weekly and the monthly R2s now providing immediate support, the Buck has the opportunity to even put the 115.00 level to the test, as the upper Bollinger band marks the possible intraday high, as well as the a psychological resistance area, which the given pair failed to pierce back in March.
There are 66% of traders holding short positions (previously 65%), while 51% of all pending orders are to acquire the US Dollar.