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"Investors are feeling safe to sell the yen because the market thinks the world can avoid the worst scenario in terms of economic growth"
- Ueda Harlow Ltd. (based on Bloomberg)
Industry outlook
In the nearest future USD/JPY may struggle at 81.49/63, however, in the long-term the pair is anticipated to continue advancing towards 83.80. Dips in the meantime should be limited by supports located at 80.00 and 79.57/55.
Traders' sentiment
USD/JPY pair is presently overbought, as the majority of positions (70%) opened on the pair are long. On the other hand, nearly a third of traders (30%) expect the Japanese Yen to appreciate relative to the US Dollar.
Long position opened
The initial resistance level for intraday trading is 81.62. Bulls might establish additional targets at 82.05 and 82.90 if the Buck gains in value more.
Short position opened
Major market participants with short positions will hold their deals until the price slides down to the initial support level at 80.34. If the price continues the downtrend, the dealers might wait for the price to depreciate down to 79.49 or 79.06.
© Dukascopy Bank