USD/JPY under the risk of plunging under 112.00

"The news is having impact on sentiment. Safe-haven currencies are being supported on the headlines."
- Nomura (based on Reuters)

Pair's Outlook
The Greenback extended its gains against the Yen on Tuesday, breaching the immediate resistance in face of the weekly PP. The US Dollar is expected to prolong its rally, but with gains limited by the 113.00 major level, which in turn is reinforced by the 20-day SMA. The USD/JPY pair's main target is the descending channel's resistance line around 113.50, but setbacks might also occur, as technical indicators suggest. The exchange rate could return back below the 112.00 mark and find support only around 111.44, represented by the Bollinger band.

Traders' Sentiment
Today 74% of all open positions are long, one percentage point up since yesterday. At the same time, the buy and the sell orders broke out of the equilibrium, with sell ones now taking up 63% of the market.