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"The exchange rate has appreciated over the past year partly because of safe-haven capital inflows, and our analysis suggests that the yen is moderately overvalued from a medium- term perspective"
- IMF (based on Bloomberg)
Pair's Outlook
USD/JPY is slowly heading towards a key support zone situated at 79.21/09, where the pair is expected to commence robust recovery. The first goal of anticipated rally lies at 79.89/80.03, while its extension should result in attainment of even higher levels - 80.23/34 and 80.85/91, as the long-term target is supposed to be at 83.00 and may be reached within the next three months.
Traders' Sentiment
The Japanese Yen remains the least preferred currency (being bought only in 27% of cases), followed by the Swiss Franc. As a result, an absolute majority (75%) of positions opened on USD/JPY are long, leaving merely a quarter of the market to those who deem the currency pair bearish. Additionally, 68% of orders are to acquire the Greenback and 32% of them are to short-sell it against the Asian currency.
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