- 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.