© Dukascopy Bank SA
"The yen will strengthen against the dollar if the U.S. jobs data turn out weak. The market will start pricing in the possibility of QE3 from the Fed in September"
- Gaitame.com Research Institute Ltd. (based on Bloomberg)
Pair's Outlook
Breakout above a downtrend resistance at 78.37/54 has not yet been confirmed, implying increased possibility of continuation of a downtrend, being that descending triangle is believed to be a bearish formation. Violation of support at 78.06/77.98 will pave the way towards 77.77/63 and 77.34/32, while a subsequent line at 76.68/56 is near previous BoJ intervention levels.
Traders' Sentiment
Bulls have strengthened their dominance in the market and currently constitute 73% of it, whereas merely 27% of traders expect the greenback to lose in value relatively to the Japanese Yen. However, distribution between buy and sell orders is nearly equal, being 52% to 48%, respectively.
© Dukascopy Bank SA