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"The yen is resilient as it's a risk-off market. I don't think Bernanke will make any commitment to specific policy in Jackson Hole"
- Ken Takahashi, Sumitomo Mitsui Trust Bank Ltd. (based on Bloomberg)
Pair's Outlook
After several endeavours to overcome 78.71/89 USD/JPY has finally given in and is currently headed towards a strong support at 78.13/77.98, which may provide a reason for the pair to step up despite some of the resistances situated overhead. Aside from the mentioned level at 78.71/89, 79.50/63 is also capable of halting appreciation of the U.S. Dollar in the mid-term.
Traders' Sentiment
USD/JPY has become overbought to an even greater extent than yesterday. Currently 74% of market participants are bullish and only 26% of them are bearish on the pair, signifying elevated risk of the currency couple going down, as the ability of the market to buy the Dollar is diminishing.
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