© Dukascopy Bank
"One of the major supports of the yen is low U.S. yields. With the 10-year below 2 percent, that will drive dollar-yen lower"
- Gain Capital Group LLC (based on Bloomberg)
Industry outlook
Given that USD/JPY has stabilised near 80.72 (55 day ma), bearish correction is soon to be over. However, there is still a slight chance of a drop down to 80.11 before bullish momentum is reignited.
Traders' sentiment
The share of long position holders has increased even more, up to 74%, leaving merely 26% for those, who placed short positions on the pair.
Long position opened
Leading market participants, who have entered USD/JPY market with a buy trade, are expecting to close their positions at the key resistances at 81.11, 81.33 and 81.48.
Short position opened
A part of the brokers will close their short positions near initial support level at 80.74. In case of downtrend continuation, the pair might rebound from the S2 at 80.59 or S3 at 80.37.
© Dukascopy Bank