- Morgan Stanley (based on PoundSterlingLive)
The BoJ retained its negative rate policy yesterday and, thus, strengthened against the US Dollar , causing the USD/JPY currency pair to drop 65 pips. Although the pair is on the edge of breaking its , there is a chance that the will remain contained within the triangle's trend-lines. Technical indicators are giving mixed signals, supporting this probability. On the upper side the Buck is also facing the weekly PP at 113.50, which is to contribute to keep the pair's contained, while the triangle's lower border is non-less fragile, being bolstered by the weekly S1 and the 113.00 psychological level.
traders' sentiment returned to its Monday's level of 74%, whereas the number of sell orders increased from 51 to 56%.