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"As expected, the G20 meeting did not result in big changes and it's now easier to buy the yen. There were no strong policy statements - they merely reiterated that competitive currency devaluations were not a good thing - and the yen appeared a good bargain after last week's slide".
- BBH (based on Reuters)
Pair's Outlook
As was anticipated, the USD/JPY currency pair weakened on Monday and pierced the immediate support area; however, the second target at 112.00 was not reached. Even though demand for the safe haven Yen remained strong earlier today and pushed the pair closer to the now immediate resistance—the weekly S1 at 112.01. Investors appear to have regained some confidence in the Buck, helping the pair recover from intraday losses on the moment of writing, but the resistance at 113.00, namely the weekly PP, if not to contain the volatility, then could keep the Greenback from appreciating. In case of a breach, the pair could potentially even reach the second resistance around 114.00.
Traders' Sentiment
Today 72% of all open positions are now long, compared to 70% on Monday. Meanwhile, the number of buy orders slid from 65 to 52%.
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