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"We expect more monetary easing [by the Fed] down the road. The [U.S.] unemployment rate is still far above its target and expected to remain above target at least until 2014. What's more, the recovery remains fragile and uneven"
- Rabobank (based on CNBC)
Pair's Outlook
As anticipated, USD/JPY rebounded from a support at 78.53 and pierced through a formidable resistance area at 79.06/20, confirming its serious intention to surge further. At the moment the currency pair challenges 79.67/74, breach of which will pave the way towards 80.03/06 and 80.27. On the other hand, being that most of indicators are from neutral to bearish, continuation of the rally might be postponed until the next week.
Traders' Sentiment
An absolute majority of positions opened on USD/JPY are longs, the share of which in the market is 75%. At the same time the portion of shorts is only 25%, implying general belief of the market that the Greenback is about to appreciate relative to the Japanese Yen.
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