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"Foreign players appeared to have cleared out positions before the long Japanese weekend, pushing the dollar lower. Japanese investors, on the other hand, are buying on price dips and preventing a further decline."
- Global-info Co (based on Reuters)
Pair's Outlook
The US currency lost over 75 pips against the Yen yesterday, caused by the FOMC meeting minutes results, in spite of the December hike possibility remaining in play. The second support barely managed to hold the losses and is now providing resistance, leaving the USD/JPY under the risk of falling again today. The closest support is now represented by the up-trend, along with the weekly S1, monthly R1 and 20-day SMA. The Greenback is unlikely to recover from such a slump today due to lack of market movers, whereas technical indicators suggest the pair might trade flat over the day.
Traders' Sentiment
Almost three quarters (74%) of all positions are now short (previously 70%), while the share of buy orders slid from 51 to 46%.
© Dukascopy Bank SA