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"The weak U.S. data is used as an excuse for position adjustment from the recent declines in the dollar before big events like ECB and jobs data in the U.S"
- Mizuho Corporate Bank Ltd. (based on Bloomberg)
Pair's Outlook
Advancement of USD/JPY was rejected by an initial resistance at 78.44, signifying lack of impetus the currency pair currently possesses. Accordingly, resistance at 78.64/78 from above and support at 78.04/77.98 from below form boundaries that should contain fluctuations of the price until we get a more distinct signal from technical indicators.
Traders' Sentiment
Three out of four market participants are long on USD/JPY, expecting the buck to appreciate against the Japanese Yen, while merely 25% of traders believe in an alternative scenario. Distribution between buy and sell orders also supports bullish outlook — 58% to 42%, accordingly.
© Dukascopy Bank SA