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    USD/JPY dives, as risk-off sentiment preponderates

    © Dukascopy Bank SA
    "This [today's surge in the safe-haven Yen] highlights that the JPY remains a risk appetite proxy, thereby complicating any (indirect) attempts the Bank of Japan (BoJ) may make to weaken its currency." 
    - BNZ (based on WBP Online) 

    Pair's Outlook 
    As was anticipated the USD/JPY currency pair kept gravitating towards the 107.00 major level on Friday, unable to close far away from that area and, as a result, remained relatively unchanged. However, the Japanese Yen received a boost earlier, with risk aversion returning to the markets and driving the exchange rate significantly lower. There is a possibility of the 38.20% Fibo at 106.65 limiting the losses, despite volatility stretching out beyond 106.00. Nevertheless, technical indicators are giving bearish signals, bolstering the possibility of the negative outcome, but the May low at 105.55 is expected to hold. 

    Traders' Sentiment 
    There are 71% of traders holding long positions today, unchanged since Friday. At the same time, the number of orders to purchase the US Dollar edged lower, namely from 77 to 45%.
    © Dukascopy Bank SA

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