© Dukascopy Bank SA
"Risk-sensitive assets are broadly under pressure, despite little in the way of new data releases overnight. In this environment, it is unsurprising to see the ‘safe haven' JPY."
- BNZ (based on WBP Online)
Pair's Outlook
With demand for safe-haven assets higher on Monday, the USD/JPY currency pair fell to a one-year low, while volatility stretched out even further. The risk-off sentiment also dominates today, therefore, the Greenback is likely to end the day in the red zone again versus the Yen, despite daily technical studies suggesting otherwise. The nearest support is represented by the Bollinger band and the weekly S1 at 119.93, but a drop towards the second target, namely the monthly S2 at 113.88, is not out of the question.
Traders' Sentiment
Bearish sentiment keeps ruling the market, as 73% of traders hold short positions. Meanwhile, 60% of all pending orders are to purchase the Buck, compared to 57% on Monday.
© Dukascopy Bank SA