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"It looks like Prime Minister Shinzo Abe has finally made up his mind and it's fair to consider that he decided to go to the people."
- Former deputy chief of Japan's Liberal Democratic Party (based on Reuters)
Pair's Outlook
USD/JPY continues trading between the monthly and weekly R1 for a third day in a row. It seems that the latter level looks rather strong for pair's bulls to be crossed. If the pair eventually succeeds in doing that, we can wait for a strong advance up to monthly R2 at 117.26. This idea is shared by daily and weekly technical indicators, which give confident bullish signals. In case of failure, the pair is anyway unlikely to decrease below the 2007 Dec high at 114.67.
Traders' Sentiment
Even though opened positions remain bearish in 54% of all cases (55% yesterday), pending orders lost their strong positive sentiment. At the moment only 51% and 55% on them are set to acquire the US dollar against Japanese yen in 50 and 100-pip ranges, respectively.
© Dukascopy Bank SA