© Dukascopy Bank SA
"What we are seeing today is a correction after overwhelming selling in the dollar we saw last week. It is just unwinding of positions, not fresh bets against the yen."
- Nomura Securities (based on Reuters)
Pair's Outlook
The Greenback appears to be eager to recover from an almost full week of losses against the Japanese Yen, despite mixed fundamental results on Friday. The USD/JPY currency pair still faces an obstacle, represented by the monthly S1, at 117.50, which could limit the gains, while the second target rests circa 118.19. Weekly technical studies suggest the Buck is under the risk of falling deeper down this week, namely towards the 2015 low at 115.85. During the previous month the USD mostly maintained trade closer to that one-year low, so far unable to edge lower on hopes of an interest rate hike.
Traders' Sentiment
Today 71% of all open positions are short, compared to 68% last Friday. The share of purchase orders inched up from 52 to 57%.
© Dukascopy Bank SA