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"JPY's strong seasonal tendency to rally in August has not played out yet and JPY is little changed month-to-date against both USD and EUR"
- RBC Capital Markets (based on CNBC)
Pair's Outlook
The price has pierced several resistances, but hesitates to prolong the move, being that 79.00/04 and 79.29/50 lie overhead. While USD/JPY is likely to advance further following a bearish correction, rally may not be as pronounced, implying choppy trading sessions. Nevertheless, the outlook remains bullish and potentially 79.29/50 could be overcome.
Traders' Sentiment
Judging by the distribution of bulls and bears in SWFX marketplace, in general market participants expect USD/JPY to surge, as 72% of all the positions are long and only 28% are short. Additionally, the rally of the pair will be encouraged by a large number of buy orders, which constitute 65% of the total amount.
© Dukascopy Bank SA