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"Our view is that Japan, should have a floating exchange rate set by the markets. However, intervention can be used to avoid disorderly markets, but that should come in the context of free-floating markets"
- IMF (based on CNBC)
Pair's Outlook
The currency couple has received a bullish impetus after encountering a tough support area at 79.23/11 and is currently heading towards an interim resistance located at 79.97/80.03, which is unlikely to contain USD/JPY for long, even though majority of weekly studies point to the downside. Subsequent levels may be found at 80.23/37 and at 80.85/91.
Traders' Sentiment
According to SWFX sentiment index, an overwhelming majority (74%) of traders have preferred to enter the market with buy trades, while only 26% of market participants expect the Japanese Yen to appreciate against the Greenback. Moreover, 70% of orders are to acquire USD and 30% are to sell it.
© Dukascopy Bank SA