- IG (based on CNBC)
USD/JPY violated a yet another monthly , closing 110 pips lower yesterday. As a result, there are no more significant supports separating the pair and the 2015 low, which is expected to trigger a reaction that may take us back to 117.50. In the meantime, if demand at 116 yen fails to stop the sell-off, the next potential reversal point is seen only at 101 yen, namely the 2014 low. And although these are speculations, the BoJ seems unwilling to let the national currency strengthen this much.
The bears remain in the lead with 68% of the SWFX market. As for the distribution between the buy and sell orders, 52% are to purchase and 48% are to sell the Buck against the Yen.