- Bank of America Merrill Lynch (based on Reuters)
On Monday the USD/JPY currency pair managed to partially recover last Friday's losses, with trade closing at 117.31, just on top of the weekly PP . The is now providing immediate support, pushing the Greenback higher against the Yen, while the monthly S2 at 117.63 acts as the closest resistance. Although a slowdown in Chinese GDP failed to have an instant effect on the pair and strengthen the JPY, it did spark the risk aversion. As a result, the Buck could erase current gains and fall to 117.00, as technical indicators suggest with their signals.
Bears keep outnumbering the bulls, as 69% of all open positions are short, whereas the number of sell orders inched up from 51 to 54%.