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"The dollar may climb toward its highs in August and September versus the yen"
- Bank of America Corp. (based on Bloomberg)
Pair's Outlook
The currency pair is slowly approaching an edge of the bearish channel at 78.42 that lies overhead. There USD/JPY is likely to be capped, since technical indicators do not give a distinct signal. The upper shadow of the candlestick might extend up to 78.71/77, but only a close above it will ensure that the rally is not a false breakout. In the meantime, an interim resistance is at 78.10/77.99.
Traders' Sentiment
The greenback is believed to appreciate relatively to the Japanese Yen by a significant part of SWFX market participants. Presently 70% of traders are long on USD/JPY, while merely 30% are short and foresee a different scenario. Additionally, 82% of orders are to acquire the Dollar against 18% to buy the Yen instead.
© Dukascopy Bank SA