USD/JPY Analysis: Struggles to remain above 101.00
|“The dollar may not be able to defend its number one spot if the economic outlook turns negative, handing its top safe-haven place to the yen.”
- State Street Global Markets (based on Reuters)
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Pair’s Outlook
The USD/JPY pair erased most of intraday gains yesterday, but still managed to close trade above the 101.00 major level. Once again having put the 20-day SMA to the test earlier today, the Greenback was unable to maintain trade above 101.50. This could be a sign of potential weakness, which technical studies are in favour of. The immediate support area, located around 100.80, is unlikely to limit the losses if bears take over today; instead, the 100.32 is the main target, as it kept the pair afloat for two weeks in a row now. Overall, another bullish development will not change the whole picture for the Dollar/Yen, as the bearish trend is to remain intact. -
Traders’ Sentiment
Bullish traders’ sentiment returned to its Wednesday’s level of 64%, whereas the portion of buy orders increased from 47 to 60%.
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