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"Some JPY shorts were unwound last week and, on the whole, yen positioning is close to neutral. This highlights the room for JPY downside should markets accelerate speculation that the Bank of Japan may be forced to deliver more easing […]."
- Danske Bank (based on FXStreet)
Pair's Outlook
The Greenback declined against the Japanese Yen on Monday, amid a risk-aversion sentiment dominating the market. However, the losses exceeded expectations, as the pair pierced the support trend-line and closed trade under the 120.00 major level. With the risk-aversion in place and boosted demand for safe-haven currencies, such as the Yen, the given pair is likely to suffer more weakness today. Immediate support is represented by the weekly S1 and the Bollinger band around 119.30, but a fall under 119.00 is not out of the question if the fundamentals disappoint.
Traders' Sentiment
Bullish traders' sentiment returned to its Friday's level of 61%, whereas the number of purchase orders declined from 72 to 57%.
© Dukascopy Bank SA