‘It is too early to expect a sustained recovery even though on the converse, the odds for a break below 110.00 have diminished considerably.’ – UOB (based on FXStreet)
Even though the Greenback weakened against the Yen on Wednesday, no significant losses were registered, with the pair remaining above 111.00. The nearest resistance is still the monthly S1 at 111.26, which is expected to prevent the USD/JPY pair from climbing higher today. Being that there is barely any room for a rally, the bearish development is the most probable outcome. Furthermore, technical indicators also suggest the US Dollar is to edge lower today. Although the nearest support rests at 110.35, namely the weekly S1, the 110.60 level appears to be providing strong psychological support, forming the lower boundary of the pair’s consolidation range.
Market sentiment remains bullish at 72%, but all pending orders are now equally divided between the buy and the sell ones.