© Dukascopy Bank SA
"Nothing has been resolved on Europe's debt crisis and it won't end any time soon. The yen is being bought in such a negative situation because there are few other choices"
- FX Prime Corp. (based on Bloomberg)
Pair's Outlook
The currency pair has penetrated several supports and is currently testing 78.52 - the last obstacle en route to 78.08/77.97. The latter level is unlikely to give in easily, however, if it is broken, there will be no considerable levels until 76.69/39 and the downward move will have a lesser chance to be delayed by bullish corrections and consolidations.
Traders' Sentiment
The overwhelming majority of market participants (74%) stay long on USD/JPY, since the Japanese Yen is the second least preferred currency aster the Swiss Franc. Additionally, if the pair dips, it will be supported by a large amount of buy orders (68% of the total number) and the share of bullish positions is likely to only increase.
© Dukascopy Bank SA