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"At the next Fed meeting I think they will do nothing again. At Jackson Hole, Bernanke will likely acknowledge that the economy is still on shaky ground, but not sufficiently weak to warrant explicit QE3"
- Federated Investment Management (based on CNBC)
Pair's Outlook
USD/JPY is undergoing a bearish correction following an encounter with a formidable resistance at 79.50/66, which includes the 200 day SMA, and should soon commence recovery either from the nearest support zone at 79.24/04 or from a subsequent level at 78.72/59. In any case the outlook on the pair is bullish, as it is expected to gradually leave the vicinity of the current levels.
Traders' Sentiment
The fact that the Japanese Yen is the least preferred currency compared to its major counterparts is also reflected in relative positioning of traders on USD/JPY. An overwhelming majority (75%) stays bullish on the pair, and merely a quarter of them believes the Asian currency is going to appreciate.
© Dukascopy Bank SA