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"If this risk-aversion in the market (further) affects the stock and foreign exchange markets, that could worsen the sentiment among consumers and corporations [in Japan] and put downward pressure on the real economy"
- Motohisa Furukawa, Japan's economy minister (based on WSJ)
Pair's Outlook
USD/JPY is now rapidly advancing towards 77.06. Although before reaching it, the currency pair will have to clear out supports situated at 78.07 and at 77.63, which in turn will attempt to halt southward movement. On the other hand, rallies are unlikely to appear, given a number of tough supports that lie overheard. An initial level is at 78.59, followed by a confluence of supports, which creates a formidable area at 78.99/79.12.
Traders' Sentiment
Traders' sentiment remains unchanged since the last report, since the ratio between bullish and bearish on USD/JPY market participants is still 71% to 29%. As for the distribution of orders placed on the currency pair, 60% of them are the commands to acquire the Greenback and 40% of them are to sell the U.S. Dollar against the Japanese Yen.
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