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"This lack of consistency in U.S. economic reports will make it very difficult for the Federal Reserve to justify another round of asset purchases."
- GFT (based on MarketWatch)
Industry outlook
Yesterday USD/JPY managed to pair previous intraday losses, as strong ISM Manufacturing PMI report showed that the business activity is improving in the US. This bullish movement could be short-lived as the bearish bias is mostly dominating the pair. If the bearish scenario continues, traders could face the next strong support around 78.35/50 (200-day MA).
Traders' sentiment
Bulls continue to dominate USD/JPY as they constitute 74.74% of all the market participants, which can be explained by the Japanese Yen being the least popular among the bullish traders currencies.
Long position opened
Investors should pay close attention to the identified resistance levels for the pair at 80.37, 80.67 and 81.03.
Short position opened
Major market participants with short positions will hold their deals until the price slides down to the initial support level at 79.71. If the price continues the downtrend, the dealers might wait for the price to depreciate down to 79.35 or 79.05.
© Dukascopy Bank SA