© Dukascopy Bank SA
"The yen, euro and Swiss franc are funding currencies...and so when things calm down, dollar/yen can rise and the euro can slip against the dollar."
- Sumitomo Mitsui Banking Corp (based on CNBC)
Pair's Outlook
The Greenback not only stabilised above 120.00 yesterday, but also tested the weekly S1 at 120.41. The Buck is nearly halfway through negating this week's losses, which might occur today if the US Dollar receives a sufficient boost. However, technical studies retain their bearish signals, suggesting the USD/JPY is to weaken today, although a tough cluster supports the pair from below, represented by the Bollinger band and weekly and monthly S2s. The base case scenario, on the other hand, is a surge towards the 200-day SMA around the 121.00 major level.
Traders' Sentiment
Bulls keep losing numbers, as only 55% of all positions are long today. The share of buy orders, however, inched up from 39 to 63%.
© Dukascopy Bank SA