© Dukascopy Bank SA
- Credit Agricole (based on WBP Online)
Pair's Outlook
The US Dollar edged lower against the Japanese Yen, as risk aversion was dominating the markets on Monday and, as a result, drove the pair almost to the 106.00 level. Technical indicators retain their bearish signals today, suggesting that more bearish momentum is likely to follow. In this case the weekly S1, which is the closest support, is unlikely to prevent the USD/JPY pair from falling deeper down, therefore, more focus should be on the May low of 105.55, while it is also reinforced by the Bollinger band and the weekly S2 today. On the other hand, strong US fundamentals could help the Buck to recover some value, jumping back at least towards the 38.20% Fibo at 106.65.
Traders' Sentiment
Nearly three quarters (73%) of all open positions are now long, but the portion of orders to sell the US Dollar edged higher from 55 to 60%.
© Dukascopy Bank SA