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"We do expect the yen to weaken over time. In the medium term we should be looking for a move well into the 85 to 90 region if not higher"
- Citigroup Inc. (based on Bloomberg)
Pair's Outlook
USD/JPY has reached a new 19-month high—84.63, but seems to be reluctant to carry on stepping higher, even though technical indicators on all relevant timeframes are bullish in aggregate. The price is presently undergoing a consolidation phase, while bulls make a break before challenging a 26-month high at 85.95, as the price looks well-positioned to continue recovery in the long-term.
Traders' Sentiment
The Japanese Yen is unprecedentedly popular among the traders, who buy it (54%) slightly more frequently than sell it (46%). Nevertheless, the buck appears to be an even more attractive currency, since in USD/JPY 58% of positions are long and 42% are short. Moreover, 84% of orders are buy and merely 16% are sell.
© Dukascopy Bank SA