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"Ranges have been reasonably tight with pairs showing a small bias toward U.S. dollar gains"
- RBC Capital Markets (based on MarketWatch)
Pair's Outlook
USD/JPY lifted from 79.56/31 and bumped into an interim resistance at 79.84. The currency pair is indeed gaining bullish momentum, which, however, is still fragile and equivocal. Later on resistances should be encountered at 80.46/61 and at 81.04/28, provided we see continuation of yesterday's rally after 79.84 is overcome.
Traders' Sentiment
SWFX liquidity consumers' sentiment index on USD/JPY remains largely unchanged, since the overwhelming majority (70%) of market participants stay long on the pair, whereas bearish traders form merely 30% of the market, being that the Japanese Yen is the least popular currency right now. Moreover, the ratio between buy and sell orders is 71% to 29%.
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