‘It remains to be seen how much the dollar can gain from Trump’s speech, as specifics regarding tax reforms, which is of key interest to the market, may not be available until March.’ – Barclays (based on Reuters)
There were no surprises in the USD/JPY pair’s performance on Monday, being that the Buck easily outperformed the Yen, with volatility limited by the immediate resistance area. The Buck still has room for another rally, with the main target being the supply cluster around 113.32, represented by the two-month bearish trend-line and the weekly R1. Trump’s highly anticipated speech today could provide the US currency with sufficient impetus for a surge beyond this target, but with the third resistance cluster most likely limit those possible gains. Meanwhile, the support remains unchanged, namely the three-month zone circa 111.75.
Today 65% of traders hold long positions, while 48% of all pending orders are to buy the Buck (previously 61% and 59%, respectively).