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"[Japanese] production has entered a soft patch. A slowdown in global demand, especially in Europe and Asia, may weigh on production"
- Daiwa (based on Bloomberg)
Pair's Outlook
USD/JPY gravitates towards 79.36/12 and is yet unable to leave its vicinity despite the overall bullish outlook and signals of technical indicators. Delay in resumption of a rally raises concerns whether the pair will be able to remain within the upward channel. Supports are located at 78.63, 78.16 and 77.63/54, in case 79.36/12 is eroded and bulls take the lead in deciding further development.
Traders' Sentiment
Regardless of diminishing number of bullish towards the currency pair market participants, the general stance of traders is long and is likely to remain as such for a prolonged period of time. This may be confirmed by distribution of positions in the market between long and short position holders, which is currently 71% to 29%, accordingly.
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