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- State Street Global Markets (based on Reuters)
Pair's Outlook
Although there are considerable downside risks present at the moment, USD/JPY is consistently respecting the down-trend support that connects the most notable peaks (May 22, Jul 7, Aug 23) and the most recent valleys. Accordingly, even though the sell-off is expected to persist, judging by the technical indicators, the price is highly unlikely to violate this falling line.
Traders' Sentiment
To a large extend SWFX market participants have changed their expectations regarding the Japanese Yen—more of them have become bearish on the Asian currency. In all of its crosses the portion of the Yen-long positions plunged from 40% to 30%. Respectively, the sentiment in USD/JPY is now even more bullish than yesterday—74% of positions are long.
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