- Merrill Lynch (based on CNBC)
Bulls refused to give up just yet, causing the Greenback to outperform the Yen on Wednesday, even erasing Tuesday's losses. Even with the nearest resistance located at 121.27, namely the monthly R1, the USD/JPY appears to be struggling to climb too far above 121.00. The 200-day is located at the given major level, but keeps failing to hold the losses when those occur, opening the door for a possible decline towards the 55-day . However, according to technical studies the Buck is to extend its rally today.
Bears keep growing stronger, as 59% of all positions are now long (previously 54%). At the same time, the number of orders to acquire the US Dollar increased from 61 to 74%.