© Dukascopy Bank SA
"On the other hand, we expect September international securities flow data to show continued support for the USD/JPY from buying on weakness mainly by pension funds. The point on the pension flows is how the momentum of their buying will sustain in the coming months."
- Deutsche Bank (based on FXStreet)
Pair's Outlook
Despite trading limbo through most of the day, the US Dollar managed to climb almost 50 pips against the Japanese Yen on Monday. The Greenback should strengthen for the second day, but a potential resistance level, which kept the given pair from edging higher for almost five weeks now, lies on the way around 120.63. Furthermore, the resistance cluster around 120.80 could also play its part and even force the Buck to retreat to the 120.00 major level, also reinforced by the monthly PP.
Traders' Sentiment
Although not as strong as yesterday, but market sentiment remains bullish at 70% (previously 74%). Meanwhile, the portion of commands to acquire the Buck dropped from 60 to 58%.
© Dukascopy Bank SA