‘The Trump reflation trade could still reverse course in a more meaningful way, resulting in dollar weakness.’ – MUFG (based on Business Recorder)
Pair’s Outlook
Fortunately for the US Dollar, it managed to avoid substantial losses against the Japanese Yen yesterday. Nonetheless, a new four-month low was reached, but with the USD/JPY pair once again remaining above the 110.60 level, which appears to be providing strong psychological support. As a result, the Greenback has the opportunity to post gains today, as another leg down would cause a breach of this support. Moreover, the weekly S1 and the Bollinger band are somewhat bolstering the psychological demand area, even though technical studies are unable to confirm the possibility of a recovery.
Traders’ Sentiment
Market sentiment remains bullish, as 71% of all open positions are long, compared to 72% yesterday. At the same time, the portion of orders to acquire the Buck inched up from 65 to 66%.
