© Dukascopy Bank SA
"We won't hesitate in taking additional monetary easing steps if we feel that risks have heightened enough and that the economy may undershoot our forecasts even after this month's monetary easing"
- Takehiro Sato, BoJ board member (based on CNBC)
Pair's Outlook
Support at 77.68/63 appears to be unable to halt the price from declining, although it is too early to say, as only a close below will confirm intentions of the pair to go lower. Subsequent area lies at 77.43/18 and for now is deemed to be impenetrable. Accordingly, it should not allow USD/JPY to reach 76.89 or 76.49, but rather initiate activity of bulls and commence long-awaited recovery.
Traders' Sentiment
Trader' sentiment remains strongly positive towards USD/JPY, as 73% of orders opened on the pair are long, while only 27% of the market participants consider appreciation of the Japanese Yen as a more likely scenario. Such bullish stance of traders is also supported by the ratio between buy and sell orders—78% to 22%, respectively.
© Dukascopy Bank SA