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"Intervening at this stage would be unwise and a waste of money. As long as Europe remains in a state of confusion, yen will continue to be bought for its relative safety"
- Fukoku Capital Management Inc. (based on Bloomberg)
Pair's Outlook
USD/JPY is attempting to recover, although this bullish advancement is likely to be short-lived, given that majority of technical indicators point to the downside. The rally should be halted by a resistance at 78.45 or at 79.00/24, the latter being a more formidable level. Afterwards we anticipate to see resumption of the overall bearish trend, which may be terminated at 77.07.
Traders' Sentiment
The Japanese Yen is the least frequently bought currency among its major counterparts. Accordingly, the overwhelming majority of traders (73%) stay bullish on USD/JPY, while merely 27% believe the Asian currency will gain in value relative to the Dollar. Additionally, 58% of all the orders placed are buy orders and 42% of them are sell orders.
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