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"The tone of the market still feels greatly uncertain as we head into earnings season in the United States and indeed the market is now focusing its attention that way as it seeks out bad news wherever it can find it"
- Faros Trading (based on CNBC)
Pair's Outlook
USD/JPY remains in proximity to a formidable support zone that stretches from 78.18 down to 77.99 and the pair is reluctant at the moment to challenge it. Still, since the price has recently bounced off a downtrend resistance line, it is anticipated to continue sliding lower. The next notable support should be found at 77.53/37, which is unlikely to give in, but rather initiate an eventual recovery.
Traders' Sentiment
While the Japanese Yen stays as the most unpopular currency in the SWFX marketplace, being acquired only in 29% of cases, an overwhelming majority (72%) of positions opened on USD/JPY are long. As for the orders, 82% are to buy and 18% are to sell the greenback against of the Yen.
© Dukascopy Bank SA