© Dukascopy Bank SA
"This [strong NFP reading] means that the Fed continues to be on track for rate increases."
- ABN Amro Bank NV (based on Bloomberg)
Pair's Outlook
Despite a strong reading of the US Non-Farm Payrolls on Friday, the USD/JPY was unable to maintain trade in the green zone. The pair retreated from intraday gains and breached the key support, breaking the three-year up-trend, as the Yen's safe haven status prevailed. The bearish trend appears to be intact, as the Greenback keeps struggling to outperform the Japanese currency. A failure to rebound is likely to lead the Buck towards the 2015 low of 115.85, as the immediate support lacks the strength to limit the losses. Meanwhile, the monthly S2 is to prevent the pair from climbing up.
Traders' Sentiment
Bearish market sentiment remains unchanged at 58%, whereas the portion of orders to acquire the USD edged higher from 43 to 58%.
© Dukascopy Bank SA