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"Despite the disappointing growth environment, on a relative basis, the trend in the U.S. looks better"
- Pacific Investment Management Co. (based on WSJ)
Pair's Outlook
Following a recent rally through a tough zone at 79.24/04 the pair has instantly returned to it and is about to commence a consolidation phase. After trading flat for a short period of time, USD/JPY should recover during the next week and struggle at a resistance area situated at 80.03/43, which is reinforced by 80.82 (100 say SMA) and 81.22/52.
Traders' Sentiment
The Japanese Yen is the most rarely bought currency in SWFX marketplace among its major peers. Accordingly, an overwhelming majority (75%) of positions opened on USD/JPY are bullish, leaving 25% of positions to bearish ones. Moreover, 70% of orders are to buy the Greenback and 30% of them are to sell it against the Asian currency.
© Dukascopy Bank SA