© Dukascopy Bank SA
"Investors have already found it difficult to buy the yen further, given the monetary policy direction, but they tend to ignore this point when there's talk of risk factors such as oil prices."
- Mizuho Securities (based on MarketWatch)
Pair's Outlook
Despite the support from the technical indicators the latest rally from 116.50 yen proved to be unable to extend beyond the 200-day SMA, meaning the outlook remains bearish. Even if USD/JPY breached 121.50, there would still be a major down-trend at 123. Accordingly, while there might be a small recovery from 119.60, the recent gains are likely to be eventually negated. Beneath the weekly pivot point the next target should be the weekly S1 level at 117.50, followed by the 2015 low at 115.85.
Traders' Sentiment
There are less bears than yesterday—their portion fell from 72 to 68%. On the other hand, the percentage of orders to sell the Greenback soared from 42 to 75%.
© Dukascopy Bank SA