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"It's very, very difficult for the authorities in Japan to dilute the currency as a safe-haven instrument. The periodic moves to create shock and awe have only worked very temporarily"
- HSBC Holdings Plc (based on Bloomberg)
Pair's Outlook
USD/JPY appears to have finally breached a downtrend resistance line that weighed upon the currency couple for almost three months. The pair has left a bearish channel and is currently trading above a significant support area at 79.03/24. Nonetheless, to confirm its bullish intentions, USD/JPY will have to conquer 80.03/14 as well, prior to further advancement.
Traders' Sentiment
Being that the Japanese Yen is the least popular currency on the board among its major counterparts, sentiment of market participants towards USD/JPY is bullish to a substantial extent. Slightly more than 70% of traders stay long on the pair, whereas merely 30% of them expect the Asian currency to appreciate relative to the Greenback.
© Dukascopy Bank SA