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"The markets turned risk-on after Draghi delivered what was expected. The dollar and yen are being sold"
- FX Prime Corp. (based on Bloomberg)
Pair's Outlook
USD/JPY has sped up development of its rally and has already surged above 78.64/78, meaning that the next resistance that is likely to fall a victim to bulls is at 79.04/09. Additional levels are at 79.34/38 and 79.55/68 and should also be challenged by the pair fairly soon, since support at 78.04/77.98 is able to absorb downward momentum and restore bullish bias.
Traders' Sentiment
According to SWFX traders' sentiment index, the market continues to expect appreciation of the USD comparatively to the JPY, as 72% of all the positions on the pair are long, leaving merely 28% of the market to those, who await strengthening of the Japanese Yen. Besides, the amount of buy orders constitute a majority—69%.
© Dukascopy Bank SA