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"The stronger the U.S. economy, the stronger the sense that the interest-rate story will turn around and some of the strength in JPT relative to the USD starts to reverse course"
- Barclays Capital (based on Bloomberg)Bullish momentum of the currency pair is not weakening and is expected to persist. After breaching resistance zone at 79.93/80.25 USD/JPY is likely to surge up to 82.80. Dips should by contained by supports at 79.63/43 and 78.41/29.
Traders' sentiment
Bullish traders' sentiment remains stable on USD/JPY currency couple, as 81% of traders' have entered the market with a buy trade, while only 19% of them consider the pair bearish.
Long position opened
Major market participants are likely to close their long positions at the key resistance levels. The primary short-term target will be reached at 79.87. The breakout of this level will pave a way for a bullish run up to 80.00 and then to 80.17.
Short position opened
Major dealers are planning to partially close their short positions if the pair touches upon the first support level at 79.57. However, if the bearish impetus proves to be strong enough, some of the positions could be squared off at S2 of 79.40 and at S3 of 79.27.
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