USD/JPY under the risk of erasing last week's gains
"Dollar/yen will continue to watch movements in risk assets like crude oil and equities, for direction. During 'risk off' phases the yen continues to show the strongest reaction. The dollar approached the 115 yen threshold recently and this also makes it easier for participants to sell the currency."
- Barclays (based on CNBC)
Pair's Outlook
The USD/JPY currency pair's sell-off was limited by the immediate support cluster yesterday, however, it is uncertain whether the cluster will succeed in doing so again today. Technical studies retain their bearish signals, while the risk-off sentiment returned to the markets after another Yuan devaluation by the PBoC. The Yen now has the upper hand against the Buck and could push the pair all the way down to the 112.00 level, which in turn is bolstered by the monthly S3. On the other hand, if bulls manage to take over, the US Dollar could then successfully retake the 115.00 major level.
Traders' Sentiment
Today 67% of traders retain a positive outlook towards the USD, whereas the number of purchase orders plunged from 51 to 23%.
- Barclays (based on CNBC)
Pair's Outlook
The USD/JPY currency pair's sell-off was limited by the immediate support cluster yesterday, however, it is uncertain whether the cluster will succeed in doing so again today. Technical studies retain their bearish signals, while the risk-off sentiment returned to the markets after another Yuan devaluation by the PBoC. The Yen now has the upper hand against the Buck and could push the pair all the way down to the 112.00 level, which in turn is bolstered by the monthly S3. On the other hand, if bulls manage to take over, the US Dollar could then successfully retake the 115.00 major level.
Traders' Sentiment
Today 67% of traders retain a positive outlook towards the USD, whereas the number of purchase orders plunged from 51 to 23%.