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"In the absence of a compelling growth story outside of the U.S., the dollar is not as unattractive as it was two years ago"
- Citi (based on MarketWatch)
Pair's Outlook
Support at 78.14/77.99 appears to be unable to stop depreciation of the U.S. Dollar, implying that USD/JPY may fall as low as 77.55/37 in near future, since there are no more notable levels in-between. If the currency pair still steps lower, however, it may challenge 76.99/95, although long-term outlook remains bullish, the view that is supported by forecasts for the next three quarters.
Traders' Sentiment
Stance of market participants towards USD/JPY is largely unchanged since yesterday, being that 71% of traders are currently long and only 29% are short on the currency pair. The fact that the portion of buy orders is 84% of the total amount, gives an even stronger "buy" signal.
© Dukascopy Bank SA