© Dukascopy Bank SA
"The yen's rise is posing downside risks to the economy and the biggest factor lies in Europe's problems. No matter how Europe insists that it is making efforts, it would not mean much unless markets appreciate them"
- Jun Azumi, Japan's Finance Minister (based on Reuters)
Pair's Outlook
USD/JPY is currently attempting to erode 79.05/18, above which the pair will gain a solid foothold and restore its positive outlook. However, at the moment the price appears to be unable to overcome a key resistance area and is slowly inching lower. The initial support it may encounter lies at 78.53, while subsequent levels may be found at 78.05/00 and at 77.63/40.
Traders' Sentiment
The portion of long positions (71%) on USD/JPY significantly exceeds the share of short ones (29%). Accordingly, the currency pair is overbought to a substantial extent, meaning an increased downside risk, even though the amount of buy orders (75%) is by far greater than the number of sell orders (24%).
© Dukascopy Bank SA