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"Whether it wants to or not, the BOJ won't have a choice but to increase asset purchases if the yen strengthens significantly"
- Shinkin Asset Management Co. (based on Bloomberg)
Pair's Outlook
USD/JPY remains unable to breach a downtrend resistance line at 79.62, which should not be violated until the currency pair rebounds from 76.94, being a key support for now. After 79.62 is penetrated, further growth of the price will be hampered by a number of formidable resistances located within levels 80.64 and 81.14, but these should be overcome in order for USD/JPY to aim for 82.86 or even 83.87 in a longer perspective.
Traders' Sentiment
The Japanese Yen is the least frequently bought currency at the moment in SWFX marketplace. Accordingly, the overwhelming majority (70%) of positions held on USD/JPY is long, while shorts form merely 30% of it. Moreover, 200 pips away from the current price, 65% of orders are to buy the US Dollar against the Yen and 35% are to short-sell it.
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