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"The yen is more likely to be bought for risk aversion till the EU summit is over. A bad auction in Italy would be a selling catalyst for the euro"
- Mizuho Corporate Bank Ltd. (based on Bloomberg)
Pair's Outlook
USD/JPY has stalled after running into a support area at 79.36/12. Accordingly, bearish momentum of the currency pair has weakened, but nevertheless is capable of dragging the price down to 78.53 or 78.16 in the medium term. Overhead lies a short-term resistance, which may be found at 79.61, followed by a subsequent level at 79.99/80.03.
Traders' Sentiment
An absolute majority of traders (72%) continue to stay long on USD/JPY, expecting the Japanese Yen to lose in value, accordingly, only 28% of the market favour stronger Asian currency. Dominance of buy orders, on the other hand, is even more pronounced than yesterday, as they form 80% of the total amount.
© Dukascopy Bank SA