© Dukascopy Bank SA
"When non-Japanese yields start rising, then you get more Japanese investors putting money offshore. This and low volatility are very supportive of the yen's weakness"
- Commonwealth Bank of Australia (based on Bloomberg)
Pair's Outlook
Not only the currency pair has managed to pierce through 79.01/06, but it is already eroding a key area 79.32/51, which appears to be prone to give in and allow further advancement. An interval until 80.87/81.04 is free from notable levels, implying a possibility of extended up legs above 79.32/51. In the meantime, supports at 79.06/01 and 78.71/64 should prevent significant dips.
Traders' Sentiment
Traders' sentiment is bullish towards USD/JPY, since 72% of traders expect the greenback to gain in value, whereas merely 28% anticipate appreciation of the Japanese Yen. As for the orders, bullish sentiment there is even more pronounced, as 76% of them are to buy the U.S. Dollar.
© Dukascopy Bank SA