USDJPY Analysis: USD falls as demand for safe haven Yen rises
|"The risk-averse sentiment stemming from 'hard Brexit' (worries) is pushing down the dollar/yenю But so far, I think the correction from the dollar/yen's high in December, and concerns about stronger protectionism under the new US presidency, have been the dominant theme."
– Mizuho Securities (based on Reuters)
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Pair's Outlook
For the sixth consecutive day yesterday the US Dollar weakened against the Japanese Yen, however, retaining its position above the 114.00 level. Even though the pair is supported by a tough demand cluster, represented by the 55-day SMA, the Bollinger band, the weekly and the monthly S1s, downside risks still persist. Moreover, technical studies also suggest the Greenback is to weaken, as they are now giving bearish signals. Risk-aversion is once again the main driver for the USD/JPY currency pair; in case of a hard shift to the risk-off sentiment, the 113.00 mark is expected to fail to hold the pair afloat today. -
Traders' sentiment
Traders' sentiment reached a perfect equilibrium today, whereas the portion of purchase orders inched slightly down, namely from 73 to 69%.
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