USD/JPY under the risk of plunging further

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The slide in the dollar against ultra-low-yielding currencies such as euro, yen and Swiss franc is evidence of a flight to safety, reversing a period of optimism where the dollar enjoyed the combination of stronger polling results for Clinton and not entirely coincidental positioning for a Fed hike in December." 
- Westpac Banking Corp. (based on Bloomberg) 


Pair's Outlook 
Even though the American Dollar weakened against the Japanese Yen on Thursday, the strong support circa 102.75 managed to limit the losses; however, the 103.00 threshold was still crossed yesterday. Earlier today the USD/JPY pair started a corrective rally after having slumped almost 200 pips this week. The main concern is whether the pair will be able to hold on to these gains or bears are to push the Buck beyond the tough support around 102.75. Apart from political factors the US NFP figures are likely to have the most impact today, the outlook for which is rather poor. Technical indicators cannot confirm either outlook, but we believe risks are skewed to the downside. 

Traders' Sentiment 

Today 63% of traders are long the US Dollar (previously 61%). At the same time, the portion of buy orders edged down from 57 to 56%.
© Dukascopy Bank SA

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