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"While the report [Beige book] offers a somewhat more encouraging perspective on the U.S. economic performance in Q1, it confirms that the recovery remains stuck in the midst of another soft patch"
- TD Securities (based on MarketWatch)
Pair's Outlook
USD/JPY continues to be capped by 78.71/89, consolidating below it for six days already. The nearest support lies at 78.13/77.98 and should keep the pair away from lower levels at 77.52/34 and 76.76/56. Accordingly, the pair is expected to regain bullish momentum and target resistances, which will be encountered at 79.13 and 79.50/62.
Traders' Sentiment
While the USD enjoys ubiquitous popularity in SWFX marketplace, the Japanese Yen is the least frequently bought currency among its major counterparts. Consequently, traders are vastly bullish (72%) towards USD/JPY despite pair's current reluctance to advance. Furthermore, distribution between buy (71%) and sell (29%) orders support this sentiment.
© Dukascopy Bank SA