- Societe Generale (based on Business Recorder)
Even though demand for safe-haven assets, such as the Yen, was higher on Thursday, the USD/JPY still managed to recover from its intraday low and retake the 107.00 level. Overall, the pair appears to be gravitating towards the monthly S1 each time, refusing to remain away from the 107.00 psychological level for long. Meanwhile, technical studies imply that another decline is due, but we should not rule out the possibility of the bullish momentum prevailing, as investors are taking profit on the pair's weakness. Nonetheless, the 38.20% Fibo at 106.65 should be a sufficient demand area to limit the losses, while the immediate resistance at 108.16 remains out of reach.
Market sentiment slightly weakened, as 71% of traders are now long the Buck, whereas the share of buy orders surged from 65 to 77%.