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"With little to chew on pending further headlines, USD-JPY may falter on fresh upticks in the interim within a 122.45-124.90 range. Any potential nervousness with respect to Greece may also be expected to manifest via the JPY-crosses, keeping USD-JPY capped."
- OCBC Bank (based on FX Street)
Pair's Outlook
On Friday, upon reaching the weekly PP at 123.23, the USD/JPY managed to rebound. As a result, the US Dollar surged up to the 124 major level, but was unable to pierce through, as the weekly R1 was bolstering the area. Today the pair opened significantly lower, namely at 122.60, with risks of falling deeper down to 122. However, weakened Asian currencies might give room for the Buck to advance and retake the 123 psychological level. Technical studies are showing mixed signs, unable to confirm either scenario.
Traders' Sentiment
Both net positions and net orders improved. Today 73% of traders are long the Greenback (previously 63%), whereas the share of purchase orders increased from 65 to 78%.
© Dukascopy Bank SA