‘The dollar will shift into 105-110 yen range, and around the turn of the year, it’s possible it will break 100 yen.’ – Eisuke Sakakibara, a former top currency official at Japan’s Finance Ministry (based on Bloomberg)
A strong rally on Thursday caused the USD/JPY pair to breach the four-week down-trend, with even the second resistance area failing to limit the gains. The Buck is poised for another bullish development today, with the main target being the 116.00 mark, where the weekly R1 and the monthly PP are located at. The Greenback, however, is likely to struggle at reaching this level, as it has another supply area on its path circa 114.90, formed by the 20 and the 55-day SMAs. Moreover, technical indicators are unable to confirm this outlook, as they are giving mixed signals today.
Market sentiment is now equally divided between the bulls and the bears. At the same time, the share of purchase orders added nine percentage points, having risen to a total of 69%.