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"We think the Fed launches QE3 today. If the Fed goes down this route, the question is whether it will be unlimited"
- RBC Capital Markets (based on MarketWatch)
Pair's Outlook
If we are to see more bearish action form USD/JPY, supports at 77.63 and 77.40 will come under considerable pressure, although, being that levels at 76.89/79 and 76.37 are too ready to absorb downward momentum, the pair is expected to stabilise and commence recovery. Still, daily and weekly studies give "sell" signals, implying that present weakness is going to persist at least until the end of the current week.
Traders' Sentiment
Among the most traded currencies, the U.S. Dollar and Japanese Yen have the greatest difference in popularity, as the former is the most frequently acquired (in 67% of cases) and the latter is the least preferred (bought in 25% of cases) at the same time across the board. Accordingly, there are 71% of long and 29% of short positions opened on USD/JPY.
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