© Dukascopy Bank SA
"The European sovereign debt crisis--which is the main reason behind rises in the safe-haven yen--remains the biggest risk factor for the nation's economy"
- Masaaki Shirakawa, governor of the Bank of Japan (based on WSJ)
Pair's Outlook
USD/JPY is about to challenge a downtrend resistance yet one more time, although the currency pair is still deemed incapable of penetrating it. The price should be thus capped by a tough resistance at 79.00/24, encounter with which should shift focus on supports once again. For now USD/JPY is underpinned by 77.90/63 and 77.27, with a key level located at 77.06.
Traders' Sentiment
According to SWFX sentiment index, USD/JPY is presently overbought to a large extent, as the portion of bullish traders is 74% of the market, leaving merely 26% for bears, since the Japanese Yen is the least popular currency at the moment. As for the orders, 59% of them are buy orders and, consequently, 41% of them are sell orders.
© Dukascopy Bank SA