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    USD/JPY to continue edging lower

    © Dukascopy Bank SA
    "I think the market is too pessimistic today, against the dollar, I don't see any reason that many people would want to buy the yen against the dollar."
    - Masashi Murata, Brown Brothers Harriman (based on Reuters)

    Pair's Outlook
    The USD/JPY retained its weakness after Yellen's dovish stance last week, which resulted in the pair's 90-pip slump on Friday. The Buck is still subject to a possible decline today, but with the immediate support, namely the Bollinger band, the weekly and the monthly s1s, most likely limiting the losses around 111.00 psychological level. Technical indicators keep giving mixed signals in the daily timeframe, suggesting a possibility of the Greenback retaking the 112.00 major level exists, whereas the closest resistance area rests only circa 112.50 in face of the 20-day SMA, the weekly and the monthly PPs. The base case scenario is a drop closer towards the down-trend below 111.00.

    Traders' Sentiment
    Nearly three quarters (74%) of all open positions are now long (previously 73%), while the number of sell orders slid from 64 to 62%.

    © Dukascopy Bank SA

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