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"The yen's rise, if prolonged, could hurt corporate sentiment and put downward pressure on the economy. From this point, I'm paying attention to the political and economic situation in Europe"
- Sayuri Shirai, Bank of Japan board member (based on Reuters)
Pair's Outlook
Being that USD/JPY has confirmed bullish breakout from a downtrend channel, the currency pair is now well-placed for further gains, even though weekly indicators point to the downside. The interim resistance is located at 80.03 and is reinforced by a subsequent zone at 80.23/35. In a few weeks, however, USD/JPY is capable of climbing as high as 80.85/91, since it is supported by 79.21/08.
Traders' Sentiment
Regardless of the difference between long and short positions narrowing, preponderance of bulls on USD/JPY is still unshaken, since 70% of traders are long on the pair and merely 30% expect the Japanese Yen to gain in value. Moreover, 68% of orders on USD/JPY are buy orders.
© Dukascopy Bank SA