© Dukascopy Bank SA
"BoJ Governor Shirakawa reiterated the upbeat assessment that exports and factory output are picking up, suggesting the BoJ sees little need to deliver additional monetary stimulus at next week's BoJ meeting "
- RBC Capital (based on MarketWatch)
Pair's Outlook
Rally above 79.84 was not sustained, which may lead to a return to a key support area at 79.58/32 despite buy signals of daily technical indicators. In case the zone does not withstand bearish pressure, additional levels at 79.12 and 78.68/40 might come into play, though such scenario has a little chance of unfolding. In the long-term we expect USD/JPY to remain bullish.
Traders' Sentiment
Regardless of USD/JPY being already overbought to a considerable extent on July 4, the portion of long positions has increased up to 75%, leaving only a quarter of the market to short positions. Judging by the fact that the share of buy orders (71%) substantially exceeds the portion of sell orders (29%), traders generally converge in opinion that the price of the U.S. Dollar is likely to grow over the coming days.
© Dukascopy Bank SA