© Dukascopy Bank SA
"If stocks continue to slump on the idea that low oil prices will become a risk to the U.S. or the global economy, dollar-yen will continue to fall. It'll be easy for the yen to strengthen amid a flight to quality."
- Sumitomo Mitsui Banking Corp. (based on Bloomberg)
Pair's Outlook
Despite the odds against, the Yen keeps gaining ground against the US Dollar. This may well result in violation of the dense demand area at 118 (23.6% Fibo, 55-day SMA) that is likely to entail a further decline, possibly down to the 38.2% Fibonacci retracement at 115.50. If the latter support also gets breached, a new line in the sand will be drawn at 113.50, where the 50% Fibo coincides with the 100-day simple moving average.
Traders' Sentiment
A decreasing price of the buck is attracting more buyers—the share of bulls in the market has gone up from 57 to 61% within the last 24 hours. Growing demand is also evidenced by a surge in the buy orders from 51 to 74%
© Dukascopy Bank SA