"The (current) exchange rate at 79 is not such an uncomfortable rate, in terms of real effective exchange rate, it's not really that high"
- Eisuke Sakakibara, Japan's former Vice Finance Minister (based on CNBC)
USD/JPY is still struggling with a resistance zone at 79.02/19 and seems to be in need of an additional try in order to climb over it. Accordingly, the currency couple is likely to pull back for now, sliding down to 78.53 or 78.04/00, where it will regain bullish momentum and challenge the area once more. Once it is overcome, subsequent levels at 79.67/76 and 80.00/03 will be targeted next.
Long positions preponderate on USD/JPY currency pair, as the overwhelming majority of market participants (74%) are convinced the U.S. Dollar is going to appreciate relative to the Japanese Yen, which is the second least popular currency after the Swiss Franc. As for the orders, 71% of them are to acquire the Greenback and 29% are to sell it against the Asian currency.