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"Kuroda is ready to be patient with inflation while pressure will mount for more action as the price target will remain distant."
- SMBC Nikko Securities Inc. (based on Bloomberg)
Pair's Outlook
The resistance at 119 proved to be impenetrable last week, forcing USD/JPY to fluctuate between the monthly PP and 23.6% Fibo most of the time. Nevertheless, the medium-term risks are skewed to the upside, being that the key supports are intact. As long as the currency pair is trading above 116, the bulls will be in a better position, though the US Dollar still needs to climb over 119 in order to re-challenge December highs at 121 and the 2014 high at 122.
Traders' Sentiment
The sentiment with respect to the greenback remains strongly bullish, as 64% of open positions are currently long. The gap between the buy and sell orders contracted, from 22 to 14 percentage points in favour of the former.
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