© Dukascopy Bank SA
- Credit Suisse (based on WSJ)
Pair's Outlook
Just as anticipated, the Japanese Yen has appreciated considerably against the U.S. Dollar and breached a formidable support zone at 78.67/59, which is expected to lead to continuous selling off, down to 77.06. However, USD/JPY will have to overcome 78.67/59 and 78.07, before targeting lower levels. Near-term rallies, on the other hand, will be limited by a resistance at 78.98/79.26.
Traders' Sentiment
An absolute majority of market participants (71%) have opened long positions on USD/JPY, expecting the Greenback to appreciate relative to the Japanese Yen, as the latter currency is the second least popular after the Swiss Franc. Moreover, 60% of orders on the currency pair are buy orders, while 40% of them are sell orders.
© Dukascopy Bank SA