© Dukascopy Bank SA
"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
USD/JPY continued the rally yesterday and now attempts to hit the initial resistance line at 80.78. Once this level is left behind, bulls might target 81.09 and 81.52. However, a short-term correction is possible before the currency couple continues advancement, thus 80.03 and 79.67 are likely to become starting points for this rally. A breach of 79.20 would signal the bearish mood returned in USD/JPY.
Traders' Sentiment
Traders' sentiment remains almost unchanged since the last report, since the ratio between bullish and bearish on USD/JPY market participants is still 70% to 30%. As for the distribution of orders placed on the currency pair, 62% of them are the commands to acquire the Greenback and 38% of them are to sell the U.S. Dollar against the Japanese Yen.
© Dukascopy Bank SA