‘Before resuming its uptrend in the medium term, we think USD/JPY will likely be capped in the near term.’ – Deutsche Bank (based on FXStreet)
As was anticipated, the USD/JPY currency pair was unable to reclaim the 112.00 mark, resulting in a 53-pip loss on Friday. Nevertheless, more bearish momentum is possible, but unlikely, since the pair rebounded after approaching the descending channel’s support line last week. Currently, the Buck is making its way towards the channel’s upper border, with the 112.00 handle being one of the main obstacles. However, technical indicators are unable to confirm the possibility of a positive outcome today, as they keep giving bearish signals. Another setback is possible, but the US Dollar is expected to hold above 110.00, therefore, refrain from retesting the lower trend-line any time soon.
There are 69% of traders holding long positions today (previously 71%), whereas 54% of all pending orders are to acquire the Greenback.