© Dukascopy Bank
"The market may not be as risk-averse as people have been saying. There would be pressure for the Bank of Japan to ease policy further if the yen strengthens. Buyers of yen against the dollar may be limited"
- SMBC Nikko Securities Inc. (based on Bloomberg)
Industry outlook
The currency couple is likely to remain bearish, given its inability to surge above a tough resistance at 80.55. The target is at 79.15/78.90, where USD/JPY may form a base and commence gradual recovery.
Traders' sentiment
Bears remain in a distinct minority on USD/JPY, constituting merely 29% of the market, whereas bulls continue to dominate with 71%.
Long position opened
Largest brokers set a new long position target as a break of 79.91 is an encouraging bullish sign en route to 80.18. If the uptrend remains, the third target for intraday trading will be 80.43.
Short position opened
Major FX traders expect the price to test the initial support level at 79.39. The breakout of this line will pave the way for the price to test S2 at 79.14 and S3 at 78.87.
© Dukascopy Bank