- TD Securities (based on WBP Online)
Poor US fundamentals caused the Greenback to erase all intraday gains and ultimately remain unchanged against the Japanese Yen yesterday. As a result, the USD/JPY opened trade just under the immediate resistance, namely the weekly PP, which might prevent the pair from advancing for another day. Losses, however, should be limited around 122.40, as the up-trend and the 20-day there are providing support. Even though technical indicators retain mixed signals, the USD has a solid chance of breaching the immediate resistance and touching the cluster around 123.50.
Market sentiment barely changed over the day, as 70% of positions remain short and 52% of all orders are to buy the US currency.