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"The dollar/yen is a bit soggy today. There are still plenty of people who want to sell the dollar, and lock in their recent gains."
- Global-info Co (based on Reuters)
Pair's Outlook
Once again the Greenback made a U-turn after having edged closer towards the 114.00 level, resulting in a 50-pip slump over the day. The nearest support, however, played its part and succeeded in stopping the USD/JPY from falling deeper. Today the US Dollar is likely to retain its post wage data weakness, allowing the Yen to take the upper hand and benefit from its safe haven status. The 20-day SMA is supporting the pair around 113.27, but according to technical indicators the Buck could drop beyond the 113.00 mark and even reach the second support area around 112.20, represented by the weekly S1 and the Bollinger band.
Traders' Sentiment
Bullish sentiment barely changed, as 71% of all open positions remain long. The share of buy orders, on the other hand, slid from 62 to 49%.
© Dukascopy Bank SA