USD/JPY unable shake off Chinese turmoil
"I have a mildly optimistic outlook for 2016. Mildly, not wildly. I expect the broad economy to continue to expand at a moderate pace. To venture an estimate - between 2% and 2.5%, possibly a little higher."
- Dennis Lockhart, Atlanta Fed President (based on WBP Online)
Pair's Outlook
The US Dollar retained some if its post-NFP strength and managed to outperform the Japanese Yen on Monday, negating Friday's losses. As a result, the exchange rate climbed back up over the up-trend, but risks of it getting pierced again persist. The monthly S1 keeps bolstering the trend-line, but is failing at providing sufficient support, especially with China weighing on the USD. Consequently, we might see a decline towards the 117.00 level, which is somewhat reinforced by the Bollinger band. However, a rally towards the weekly PP at 118.30 is possible if the fundamentals back the Buck.
Traders' Sentiment
There are now 59% of traders being short the US currency, while the number of orders to purchase the Buck edged down from 58 to 42%.
- Dennis Lockhart, Atlanta Fed President (based on WBP Online)
Pair's Outlook
The US Dollar retained some if its post-NFP strength and managed to outperform the Japanese Yen on Monday, negating Friday's losses. As a result, the exchange rate climbed back up over the up-trend, but risks of it getting pierced again persist. The monthly S1 keeps bolstering the trend-line, but is failing at providing sufficient support, especially with China weighing on the USD. Consequently, we might see a decline towards the 117.00 level, which is somewhat reinforced by the Bollinger band. However, a rally towards the weekly PP at 118.30 is possible if the fundamentals back the Buck.
Traders' Sentiment
There are now 59% of traders being short the US currency, while the number of orders to purchase the Buck edged down from 58 to 42%.