‘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)
Pair’s Outlook
A relatively strong recovery yesterday was almost sufficient to erase Friday’s losses completely, leaving the USD/JPY pair just few pips away from that day’s opening price. The Buck, however, remains under pressure and is likely to slide down due to a stronger Yen. The weekly pivot point is now the immediate support, but the cluster around 112.90 is much more reliable. A failure to find support around this area would open the way towards the 112.00 major level, where the 20-day SMA coincides with the 55-day one, but a plunge that far is out of reach for now.
Traders’ Sentiment
Traders remain bearish towards the Greenback, as 65% of all open positions are currently short. At the same time, there are 52% of orders to acquire the US Dollar, up from 50% yesterday.
