© Dukascopy Bank SA
"The comments from the IMF eased concerns that Japan may face opposition to intervene in the currency market. That may have helped to cap the recent strength in the yen"
- Mizuho Research Institute Ltd. (based on Bloomberg)
Pair's Outlook
Despite a descending triangle on the chart (the pattern which is commonly believed to be bearish), USD/JPY is attempting to close above a downtrend resistance at 78.37 and commence recovery. If the pair succeeds at breaching the resistance, area at 78.62/80 and a level at 79.11 will oppose further advancement. Still, we may not yet rule out a possibility of a bearish breakout and a fall towards 77.75/63 and 77.34/32.
Traders' Sentiment
An absolute majority (72%) of traders with opened positions on USD/JPY continue staying long on the pair, while merely 28% of the market believe the Yen remains bullish and is able to appreciate even more. As for the orders, 55% of them are to buy the greenback and 45% are to sell its against the Asian currency.
© Dukascopy Bank SA