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"The close links between the UK and the euro zone suggest that further escalation of the debt crisis will fuel investor demand for safe-haven currencies like the dollar and the yen rather than sterling"
- Citi (based on Reuters)
Pair's Outlook
The currency couple is currently contained by a support area at 79.36/12 from below and by a resistance zone at 79.99/80.03 from above. USD/JPY is expected to be range-bound today, refraining from pronounced moves and trading sideways. Afterwards, nonetheless, the price is likely to resume inching higher, since supports that underpin the pair seem to be impenetrable for now.
Traders' Sentiment
USD/JPY is overbought to a considerable extent, as 72% of market participants have entered the market with buy trades, leaving only 28% to those who anticipate appreciation of the Japanese Yen. As for the orders placed on the currency pair, 78% of them are to acquire the Greenback.
© Dukascopy Bank SA