© Dukascopy Bank SA
"Uncertainties over the outlook for the global economy are growing as the economies in the U.S. and China have been doing worse than people anticipated while Europe remains weak"
- Nomura Securities Co. (based on Bloomberg)
Pair's Outlook
USD/JPY is on the verge of breaking out of an upward trending channel, which in turn may lead to a sharp fall. The pair has already eroded an uptrend support line, but preserves potential to return above it and to continue challenging resistances, since currency couple's outlook did not yet turn bearish and key support at 79.49/35 remains intact.
Traders' Sentiment
Being that the Japanese Yen is the least preferred currency, most of market participants have decided to short-sell it against the U.S. Dollar, making USD/JPY overbought to a substantial extent and thus creating significant imbalance in the market. Currently 73% of positions are long and only 27% of them are short. In case the pair advances, rally will be fuelled by buy orders, which exceed sell orders almost three times.
© Dukascopy Bank SA