‘We believe the USD/JPY will edge upward to the ¥115-120 level not in a straight line but with some ﬂuctuation over the coming 3-6 months.’ – Deutsche Bank (based on FXStreet)
The Greenback failed to appreciate against the Japanese Yen on Friday, therefore, preserving the ascending channel’s resistance line. The pair failed to reclaim the 115.00 major level, which suggests a possible retest of the channel’s lower boundary within the next two weeks. Today the Buck is expected to weaken against the Yen, as the bearish momentum persists from the disappointment of Friday’s earnings growth data. However, due to lack of any other market movers, the given pair could retain its position above the immediate demand area, namely the monthly R1 and the weekly PP around 114.63. Any slide further down is to be limited by the 55-day SMA circa 114.28.
There are 55% of traders holding long positions today (previously 56%), while 52% of all pending orders are to sell the US Dollar.