‘I don’t feel there was incentive-backed selling [of the dollar].’ – Kenji Yoshii, Mizuho Securities (based on Market Watch)
The USD/JPY currency pair successfully climbed over the immediate resistance area on Tuesday, but was unable to reach the 114.00 major level. The main target is the 115.00 mark, with an interim resistance lying on the pair’s path around 114.40, represented by the weekly R1 and the monthly PP, which could prevent the Buck from reaching its goal. However, a strong impetus is required for a surge beyond 115.00, otherwise the consolidation trend is to be maintained. Today’s FOMC Minutes could provide such a boost for the Greenback, but lately this particular event has been failing to strengthen the US currency substantially.
Bulls are barely outnumbering the bears, as 52% of all open positions are long. The portion of buy orders surged from 38 to 63% in 24 hours.