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    USD/JPY on the edge of slipping below 106.00

    © Dukascopy Bank SA
    "The yen is among the preferred safe havens at the moment, both because of its positive correlation with risk aversion and because it's geographically removed from the UK." 
    - Credit Agricole (based on WBP Online) 


    Pair's Outlook 
    The US Dollar edged lower against the Japanese Yen, as risk aversion was dominating the markets on Monday and, as a result, drove the pair almost to the 106.00 level. Technical indicators retain their bearish signals today, suggesting that more bearish momentum is likely to follow. In this case the weekly S1, which is the closest support, is unlikely to prevent the USD/JPY pair from falling deeper down, therefore, more focus should be on the May low of 105.55, while it is also reinforced by the Bollinger band and the weekly S2 today. On the other hand, strong US fundamentals could help the Buck to recover some value, jumping back at least towards the 38.20% Fibo at 106.65. 

    Traders' Sentiment
    Nearly three quarters (73%) of all open positions are now long, but the portion of orders to sell the US Dollar edged higher from 55 to 60%.
    © Dukascopy Bank SA

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