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"The whole political situation in Japan, that safe-haven status is rather questionable at this point"
- RBS Securities (based on CNBC)
Pair's Outlook
Following a short pause USD/JPY returned to a bullish path and is presently challenging resistance at 81.92/99, violation of which will expose 82.33 and 83.12, which do not seem to be dangerous for the upward momentum. In case the pair declines, it is unlikely to find common ground until 80.89/67 is reached. Technical indicators are not distinct in their readings, but lean more towards an extension of the rally.
Traders' Sentiment
The amount of long positions (74%) exceeds the number of short ones (26%) by a wide margin on USD/JPY, implying strong belief of the market in appreciation of the greenback, although the sentiment index is believed to be a contrarian indicator. As for the orders, 88% are to acquire the buck and 12% are to sell it.
© Dukascopy Bank SA