‘And unfortunately for yen bulls, the weaker yen hasn’t led to a pickup in Japanese exports. Until this happens, the yen will likely continue to weaken.’ – Marc Chandler, BBH (based on Market Watch)
The USD/JPY currency pair appears to have topped out last week, with the 114.40 mark being the reversal point. Poor US fundamentals contributed to the U-turn, causing the Greenback to weaken further against the Yen. However, due to the pair opening with a bearish gap today, the Buck managed to regain some of its bullish momentum, paving its way towards erasing Friday’s losses. Technical indicators support this possibility, but the 114.00 major level is still expected to be out of reach. Overall, this recovery is likely to be a minor setback in the US Dollar’s bearish trend, as demand, represented by the 200-hour SMA, which caused the reversal, should not succeed again this week.
Today 63% of traders are bears (previously 65%), while all pending orders are equally divided between the buy and the sell ones.