© Dukascopy Bank SA
"The markets are inching toward expectations that the Fed will have to do something in terms of a policy initiative, whether that's QE3 or something else"
- Royal Bank of Scotland Plc (based on Bloomberg)
Pair's Outlook
USD/JPY keeps on sliding lower and is viewed as capable of falling down to 78.08/77.97 in near-term as there are no tough levels situated in the interval between it and the interim support at 78.57/52. However, being that daily and monthly indicators turned neutral, the pair may put on hold bearish move and consolidate above 78.57/52 prior to a precipitous drop.
Traders' Sentiment
Regardless of the portion of long positions contracting and the share of short positions rising, SWFX sentiment index on USD/JPY remains bullish to a large extent, as still 71% of traders perceive the U.S. Dollar as able to appreciate relative to the Japanese Yen. Moreover, 71% of orders placed on the pair are to buy the greenback and only 29% are to sell it against the Yen.
© Dukascopy Bank SA