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"The Bank of Japan looks set to keep policy unchanged. Without any impediment from the Bank of Japan, we'll see more of the same, that gradual grind lower in the next few sessions and coming months for dollar-yen"
- Bank of New Zealand (based on Bloomberg)
Pair's Outlook
USD/JPY commences another attempt to recover after breaking out of a downtrend resistance. According to technical indicators the bullish momentum, however, is not strong enough to be capable of overcoming all the resistances that are scattered overhead and are preventing prolonged rallies. The initial obstacle is located at 78.42/43, followed by 78.71 and 78.95/79.11.
Traders' Sentiment
The Japanese Yen is being sold on average in 75% of trades involving its crosses. Accordingly, the ratio between bulls and bears on USD/JPY is three to one, respectively. As for the orders, 57% of them are to acquire the greenback and 43% are to sell it against the Yen.
© Dukascopy Bank SA