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"It will have to be seen whether this happiness is going to last long. Now that sentiment in Europe seems to deteriorate slightly, the yen might be in demand as a safe haven again"
- Commerzbank (based on MarketWatch)
Pair's Outlook
Rally beyond resistance at 78.82/96 proved to be unsustainable and USD/JPY quickly returned within the boundaries of a downtrend channel. Now the pair faces support at 77.99/98 and is not expected to overstep additional levels at 77.70/49 and 77.21, near which the price may finally receive bullish impetus, but technical indicators suggest this scenario is to be postponed for now.
Traders' Sentiment
The Japanese Yen has somewhat improved its position overall, as it is no longer the least preferred currency, but USD/JPY remains overbought with 71% of positions being long. Advantage of buy orders over sell orders is also impressive, as the ratio between them is 76% to 24%, respectively.
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