- ING (based on FXStreet)
As was anticipated, the USD/JPY dropped lower through the end of the previous week, after the head of BoJ stated that further QQE in Japan is unlikely. As a result, the Greenback reached a new two-month low against the Yen, eager to recover from these losses today. A correction is possible, but the weekly is providing resistance at 120.57. Meanwhile, the and the weekly S1 form a support cluster around 119.70, while technical studies indicate another slump is due. Nevertheless, a correction might prevail after the pair plunged for six consecutive days.
Market sentiment keeps improving, as 65% of all positions are short (previously 68%). The share of buy orders edged up from 49 to 59%.