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"We share with the BOJ the view that the strong yen and deflation are challenges for the economy that must be overcome. I hope the BOJ will take bold steps in a timely and appropriate manner with such thinking in mind"
- Yoshihiko Noda, Japanese Prime Minister (based on Reuters)
Pair's Outlook
USD/JPY has managed to stabilise ahead of supports that are situated at 79.84/61, 79.19/78.96 and 78.79/67. This implies an increasing possibility of the pair reversing a fall from Mar 14 and commencing recovery. In order to confirm bullishness, the pair will have to penetrate an accelerated downtrend at 80.11 first and then a strong resistance at 80.25/49.
Traders' Sentiment
According to SWFX sentiment index USD/JPY is overbought to a large extent, being that the portion of bullish market participants in the market is 70%, while the Japanese Yen is the least popular currency among its major counterparts. Concerning the nearby orders, distribution of intentions to buy and sell is similar in numbers for both of them.
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