© Dukascopy Bank
"The [Japanese] government is hamstrung. It's very difficult to support the economy while they have debt problems"
- Moody's Analytics (based on Bloomberg)
Industry outlook
The currency couple is slowly crawling away from 76.65. In the short-term it is still expected to challenge the resistances that lie ahead. The first one is at 77.50, followed by 78.40 (200 day ma) and 79.46 (55 week ma).
Traders' sentiment
Even though by a small amount, still long positions exceed the quantity of short ones opened on USD/JPY. 55% of held trades are bullish and 45% of them are bearish.
Long position opened
Initial resistance area for the pair is situated at 77.11. Subsequent goals for the bullish market payers may be found at 77.20 and 77.33.
Short position opened
Major dealers are planning to partially close their short positions if the pair touches upon the first support level at 76.89. However, if the bearish impetus proves to be strong enough, some of the positions could be squared off at S2 of 76.76 and at S3 of 76.67.
© Dukascopy Bank