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"It's not a big surprise that Japan has cut its forecasts because growth is falling short of expectations in many countries. The yen is doing pretty well"
- FXPro Group Ltd. (based on Bloomberg)
Pair's Outlook
Despite a recent failure to breach 79.50/63, mainly formed by the 200 day SMA, USD/JPY is anticipated to gather bullish momentum and pierce through this key level, thus restoring positive outlook. On the other hand, if the pair falls below 78.13/77.98, it will become dangerously close to the levels of previous interventions by the BoJ, which may thus act as a floor and are likely to prevent dips from extending.
Traders' Sentiment
Being that the greenback is the most and the Japanese Yen is the least popular currency, an overwhelming majority of market participants (73%) have opened long positions on USD/JPY, whereas only 27% of traders believe the Asian currency is capable of appreciating.
© Dukascopy Bank SA