© Dukascopy Bank
"There were volatile movements in the currency markets overnight. We believe those moves were due to excessive reactions by speculators focused on a single U.S. economic indicator"
- Jun Azumi, Finance Minister (based on WSJ)
Pair's Outlook
Instead of sustaining a rally above 80.00, USD/JPY has pierced through several supports and is presently closing in to a level at 79.19. Nonetheless, the currency pair still might stabilise and recommence recovery if it manages to bounce off 78.96/84, under which no considerable supports are situated until 76.92, implying a long fall before any consolidation.
Traders' Sentiment
The share of long positions has increased up to 74%, implying growing conviction of market participants in appreciation of the US Dollar relative to the Japanese Yen, even though the extent, to which the pair is overbought at the moment, suggests heightened possibility of a dip, once bullish trades start being closed, an example of which has been observed the day before.
© Dukascopy Bank