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"The case for a sustainable dollar rally is weak against the backdrop of easier Fed policy and steps by the ECB to address tail risks"
- Westpac Securities (based on CNBC)
Pair's Outlook
USD/JPY was unable to overcome 78.83/99 (100 day SMA), resulting in a precipitous fall, which was halted only by 77.98/81. Most of near-term technical indicators, including daily and weekly, remain bearish, as the pair is likely to be pressured down to the nearby support, which, however, is expected to withstand, thereby largely the outlook is neutral.
Traders' Sentiment
USD/JPY is overbought according to SWFX marketplace sentiment index, as 74% of all the positions opened on the pair are long and merely 26% are short. Distribution between buy and sell orders also favours appreciation of the greenback, being 64% to 36%, respectively.
© Dukascopy Bank SA