© Dukascopy Bank
"Monetary easing by the Bank of Japan can never be a driver of real economic growth or change the yen's trend, but could temporarily weaken the yen"
- Hirohisa Fujii, former finance minister (based on WSJ)
Pair's Outlook
USD/JPY did not manage to sustain its rally above 80.00 and is slowly pulling back after test of a resistance at 80.42/49, even though it was not viewed as a major level en route to 83.00. As long as a key support at 80.00/79.84 withstands bearish pressure, the outlook for the pair should still remain bullish. The latter level guards lower supports that may be found at 79.61 and 79.15.
Traders' Sentiment
As indicated by SWFX liquidity consumer sentiment index, USD/JPY currency couple is overbought to a large extent, since 71% of all the traders have opened long positions on the pair, while bears are in distinct minority, constituting 29% of the market. At the same time the Japanese Yen is the least popular currency among its counterparts.
© Dukascopy Bank