© Dukascopy Bank
"The latest moves show the yen remains quite sensitive to global yields. Unless U.S. Treasury yields continue their rise back above 2%, it's hard to see the yen weakening too much"
- Wells Fargo (based on WSJ)
Industry outlook
USD/JPY is likely to carry on crawling lower. It is about to close below 80.51, leaving 80.11 unguarded. Additional support is located at 79.34. Resistances, on the other hand, are situated at 81.20, 81.78 and 82.22.
Traders' sentiment
According to SWFX traders' sentiment, USD/JPY remains overbought, as 74% of traders stay long on the pair and 26% stay short on it.
Long position opened
Investors should pay close attention to the identified resistance levels for the pair at 80.82, 81.26 and 81.52.
Short position opened
Major FX traders expect the price to test the initial support level at 80.12. The breakout of this line will pave the way for the price to test S2 at 79.86 and S3 at 79.42.
© Dukascopy Bank