© Dukascopy Bank SA
"The focus will still be on the [Fed] announcement on Thursday, with the expectation that the Fed will announce more policy accommodation, keeping the dollar under pressure"
- Credit Agricole (based on MarketWatch)
Pair's Outlook
USD/JPY is continuously being attracted to 77.98/81 and remains unable neither to start recovery nor to push through the interim support towards 77.63. Additionally, the trading range of the pair is narrowing, as the price posts lower highs, while support at 77.98/81 prevents dips, resulting in a descending triangle being formed, a breakout of which we will observe sooner or later, though we favour an upward one.
Traders' Sentiment
Three out of four traders hold long positions on USD/JPY, leaving 25% of the market to those who believe that the Yen is going to get more expensive. On top of that, 61% of orders placed on the pair are to buy the U.S. Dollar and 39% to exchange it for the Japanese Yen.
© Dukascopy Bank SA