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"Japan is likely to intervene at all cost if the dollar falls to a new record low versus the yen. But at current levels, intervention is unlikely"
- Dai-ichi Life Research Institute (based on Reuters)
Pair's Outlook
USD/JPY is currently approaching a resistance area 79.02/24, which is formed by a confluence of several levels, implying unlikelihood of being breached any time soon. The currency pair is anticipated to continue trading within a tight downtrend channel until is slides down to 76.97, where there is an increased chance of changing present southward direction to an upward one.
Traders' Sentiment
An absolute majority of market participants (70%) have opened long positions on USD/JPY, anticipating appreciation of the U.S. Dollar against the Japanese Yen. Accordingly, merely 30% expect an alternative scenario. At the same time 67% of orders on the pair are to buy the Greenback and 33% are to sell it.
© Dukascopy Bank SA