© Dukascopy Bank SA
"The yen is being sold as risk aversion eases. The market is pricing in a rate cut by the ECB. Better-than-expected economic data out of China and Australia are stoking yen selling against the crosses"
- Gaitame Online Co. (based on Bloomberg)
Pair's Outlook
As expected, USD/JPY surged from 79.53 and is about to confront in interim resistance situated at 79.84, which is unlikely to prevent the pair from advancing further. Serious challenge awaits the currency couple at 80.41/63, however, it may still may be a subject to a fall down to 79.31/12 before it manages to fully restore bullish outlook and start aiming for 80.96/81.28.
Traders' Sentiment
USD/JPY remains overbought to a significant extent, being that 72% of traders stay long on it, leaving the rest (28%) in anticipation of a stronger Japanese Yen, even though it is the second least attractive currency at the moment according to SWFX sentiment index. As for the orders, 77% of them are to buy the U.S. Dollar and 23% are to sell it against the Yen.
© Dukascopy Bank SA