© Dukascopy Bank SA
"Japan's weak data are probably reflective of global concerns. Sometimes, when you get indicators that suggest slowing global growth, the yen actually strengthens"
- Bank of New Zealand (based on Bloomberg)
Pair's Outlook
USD/JPY continues to slide down and has already left 77.68/63 behind. The next level is at 77.32/18—the last strong support en route to an all-time low at 75.57, as neither 76.89 nor 76.49 seem to be capable of halting the pair at the moment. The currency couple is nevertheless expected to stabilise soon and to rally despite "sell" signals of indicators on a weekly chart.
Traders' Sentiment
Traders' sentiment is largely unchanged towards USD/JPY and is strongly positive, as the portion of bullish market participants is 72%. Accordingly, the share of bearish traders is considerably more modest—28%. Moreover, the fact that 74% of traders are willing to buy the greenback, also reinforces bullish outlook.
© Dukascopy Bank SA