USD/JPY: downside risks keep rising

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Price action in USD/JPY post the Brexit slump has been horrible and a lack of verbal intervention on the drop to 100 has not helped either, it looks like the market is set to continue to test the BoJ's resolve and a move below ¥100 is just a matter of time." 
- Westpac (based on WBP Online)


Pair's Outlook 
In spite of the USD/JPY nearly reaching the 100.00 level again yesterday, the pair managed to preserve the broadening falling wedge's support line. Technically, we should see the Greenback recover today, as there is no room for another decline without breaching the trend-line. However, technical studies are no longer giving bullish signals, thus, downside risks cannot be ignored, with the final obstacle around 100.50 failing to keep the US Dollar at bay before the 100.00 mark is reached. On the other hand, the given pair retains the potential to recover and retest the weekly PP at 102.46 in the wake of possible strong fundamental data today. 

Traders' Sentiment 
Bullish traders' sentiment remains unchanged at 74%, but the number of purchase orders slightly declined, namely from 77 to 71%.
© Dukascopy Bank SA

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