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"It's a kind of familiar picture with the equities starting the day positively but then reversing gains as oil prices fell to a new low, so that's what dollar yen is really reacting to."
- BNP Paribas (based on Bloomberg)
Pair's Outlook
The monthly S2 was able to keep the USD/JPY from falling deeper yesterday, despite volatility reaching Tuesday's opening price. Although the up-trend was violated last week, this week's USD performance implies otherwise; Chinese fundamentals appear to be improving again, thus, reducing demand for safe haven currencies. As a result, the Greenback is likely to continue climbing higher, with the weekly PP acting as the closest resistance at 118.30. However, technical studies suggest the pair could still fall towards 117.00, as the indicators are now pointing south-ish.
Traders' Sentiment
Bearish traders' sentiment remains unchanged at 59%, whereas the portion of sell orders increased by 5% points up to a total of 63%.
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