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"Weak oil prices can push down dollar/yen by continuing to negatively impact high yield bonds, which in turn will worsen overall risk sentiment."
- Barclays (based on Reuters)
Pair's Outlook
The US Dollar managed to edge higher against the Yen on Monday, with the immediate resistance in face of the weekly PP somewhat limiting the volatility and causing the pair to close only at 120.40. Another decline today is unlikely, as technical indicators shifted from bearish to neutral; however, the nearest support rests only around 119.60, rather far from the spot price, compared to the closest resistance at 120.57, still represented by the weekly PP. Disappointment in US fundamentals, along with the resistance level, could trigger the possible sell-off today.
Traders' Sentiment
Today 39% of traders hold long positions (35% on Monday). Meanwhile, the number of buy orders increased from 59 to 62%.
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