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"If we are right, the Bank will probably respond by stepping up the pace of easing. The end-January meeting is the most likely venue to announce this."
- Capital Economics (based on WBP Online)
Pair's Outlook
The USD/JPY appreciated only 18 pips on Wednesday, piercing the nearest resistance, which is now forming a support cluster along with the weekly R1. However, the US Dollar got oversold today, leading the exchange rate close to the 123.00 major level, partially triggered by the BoJ's decision to leave stimulus unchanged. The given pair is now under substantial pressure, which could lead to a decline today. The immediate demand area might still limit the losses, while technical indicators are no longer giving bullish signals, suggesting a drop of the USD price is likely.
Traders' Sentiment
A total of 70% of all open positions are short today, compared to 75% yesterday. The share of buy orders edged up from 47 to 51%.
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