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"We are seeing safety bids into the yen. Fundamentals in Europe look weak because of austerity measures. The markets started to realize they can't be too optimistic about the debt crisis"
- Mizuho Securities Co. (based on Bloomberg)
Pair's Outlook
USD/JPY continuously gravitates towards 77.99 and does not give any reason to believe it intends to leave its vicinity in the observable future. However, the currency pair has a higher chance to commence a recovery than to remain bound by lines that form a downtrend channel, since supports at 77.68/63 and 77.25/18 are expected to provide enough buying pressure in order for the price to surge above 79.64/77.
Traders' Sentiment
An overwhelming majority of positions on USD/JPY are long, implying increased conviction of traders that the greenback is going to gain value against the Japanese Yen. Additionally, the portion of buy orders (78%) significantly exceeds the share of sell orders (22%).
© Dukascopy Bank SA