USDJPY Analysis: To preserve the consolidation trend
|"We approach the prospect that the Fed will raise rates in December, especially if we have a status quo result in the US election, which seems more likely. This is helping the dollar."
- Macquarie Ltd. (based on Business Recorder)
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Pair's Outlook
Due its poor performance on Tuesday, the USD/JPY pair managed to preserve its consolidation trend. Since the upper border of the trend was reached, the Buck is expected to weaken against the Japanese Yen today. The closest area to limit the losses is located around 103.75, formed by the weekly pivot point and the monthly R1. A drop lower is unlikely, as there are no significant market movers present today and technical indicators keep giving bullish signals. However, a return under the 104.00 mark is quite possible, unless bulls decide to push the Greenback higher ahead of tomorrow's Durable Goods Orders data. -
Traders' Sentiment
Bullish traders' sentiment keeps fading, being that only 56% of all open positions are long (previously 57%). Meanwhile, the number of purchase orders added 6% points, having risen to 59%.
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