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"Policy easing by the Fed still largely depends on a significant worsening in economic data and financial market conditions - neither of which appears likely in the very near term"
- Barclays Capital (based on MarketWatch)
Pair's Outlook
For the last few days USD/JPY has been choppy, fluctuating just above a key support zone at 79.18/11, which should hold the currency couple until it commences gaining bullish momentum. The nearest noteworthy resistance is located at 79.93/80.03, followed by subsequent levels at 80.23/25 and 81.52. Being that the chance of the pair sinking below 79.18/11 is not ruled out yet, we should also take account of supports at 78.43 and 78.12.
Traders' Sentiment
USD/JPY remains overbought to a significant extent, as 73% of all the positions on the currency couple are long, leaving merely 27% to those, who anticipate the Japanese Yen to appreciate relative to the Greenback, as the Asian currency is the least frequently acquired (by percentage).
© Dukascopy Bank SA