- Barclays (based on CNBC)
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 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.
Today 67% of traders retain a positive outlook towards the USD, whereas the number of purchase orders plunged from 51 to 23%.