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"Risk-off is certainly the dominant theme this morning, and we see little on the horizon this week to change the tide. For the rest of the week there is much that could boost the flow into perceived-safe-haven assets"
- Rabobank (based on MarketWatch)
Pair's Outlook
Support area at 78.16/08 managed to withstand yesterday's bearish pressure, but is still unlikely to hold off the currency couple from sliding down to 77.85 for a prolonged period of time. Additional supports are located at 77.33 and 76.59/39 and will be tested only in case current downward momentum strengthens as suggested by technical indicators.
Traders' Sentiment
USD/JPY stays overbought to a considerable extent (71%), as market participants are unwilling to close their long positions and expect the U.S. Dollar to gain in value relatively to the Japanese Yen, appreciation of which is anticipated only by 29% of the market. Additionally, dips are to be negated by buy orders that constitute 64% of the total amount of orders.
© Dukascopy Bank SA