© Dukascopy Bank
"The U.S. economy is in much better shape than the Japanese economy, so I'm ready to buy dollars on a dip, at say, below Y79.50"
- Satoshi Tate, a senior dealer at Mizuho Corporate Bank (based on WSJ)
Pair's Outlook
Just after an encounter with a downtrend resistance line the currency pair has plunged, pointing to the fact that this level will be hard to breach and it is unlikely to be done in the near future. Accordingly, we favour a scenario of USD/JPY maintaining its course down to 77.04/76.94, despite a large amount of supports that currently lie ahead.
Traders' Sentiment
Even though USD/JPY has been in a downtrend for quite some time, it still is dominated by long positions, share of which is currently 71%, signifying that the pair remains overbought and may keep on declining further. Nonetheless, 64% of orders placed in a radius 100 pips from the current price are buy orders, while 36% of them are, accordingly, commands to sell the Greenback.
© Dukascopy Bank