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"The Japanese yen is very overvalued still. There's quite a lot of weakness in the yen to come"
- Rochford Capital (based on Bloomberg)
Pair's Outlook
USD/JPY takes breath just above a 87.00 benchmark, as the price closed at 87.35, the highest daily point, yesterday. Situation in this pair is rather critical, as indicators and pair's movement send a lot of sell signals, but the actual movement remains a strong up-side. The pair has left two big gaps and made few divergences between the price and technical indicators, but expectations to see a monetary policy expansion in Japan are noticeably stronger, which are pushing the pair up.
Traders' Sentiment
The Japanese Yen loses the last support, as investors prefer the U.S. Dollar. The majority of traders, 78%, have opened buy positions and only 22% have sell positions. Pending orders segment demonstrates a huge support for an up-side movement, as 79% orders are buy and 21% are sell.
© Dukascopy Bank SA