© Dukascopy
"Japan's economy will face an adverse effect from the slowdown in overseas economies and the appreciation of the yen"
- Bank of Japan (based on Marketwatch)
Industry outlook
The currency couple stays near 76.91 for the moment, the level from which it is expected to commence recovery. To confirm reversal USD/JPY will have to overcome key resistances at 79.44 and 80.44.
Traders' sentiment
USD/JPY traders' sentiment is presently mixed, considering the current ratio between the longs and the shorts in the market being 49.93% to 50.07%, even though Japanese Yen is the least popular currency among its major counterparts.
Long position opened
The initial resistance level for the pair is 77.41. If the price continues increasing investors will hold longs until the pair climbs up to 77.74 or 78.32.
Short position opened
Major FX traders expect the price to test the initial support level at 76.82. The breakout of this line will pave the way for the price to test S2 at 76.57 and S3 at 75.99.
© Dukascopy