USD/JPY settles below 98.51/33

At first USD/JPY did in fact move north as expected, soaring as high at the monthly R1 at 99.36. Subsequently, however, it was heavily sold-off. As a result, the rate plunged through the support that was supposed to guide it upwards. Accordingly, now there is a good chance the buck will depreciate until it reaches the rising support at 97.42 before we see another attempt to commence a recovery.

Overall the attitude towards the Japanese Yen worsened, being that the frequency with which the currency is bought in its crosses has fallen from 36% to 33%. Speaking of USD/JPY in particular—even though one of the major support area has been just violated, most of the market participants, specifically 73% of them, believe the U.S. Dollar will still be able to outperform the Japanese Yen in the end despite the current softness.