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"We can't rule out the chance that the BOJ will expand easing measures next month, depending on the level of yen and discussions with new board members"
- Dai-Ichi Life Research Institute (based on Bloomberg)
Pair's Outlook
The currency pair is closing in on a recent low of 77.66, though will need first to push through two consecutive support zones at 78.16/08 and 77.94/85, the first of which has been already partially eroded. Subsequent levels are to be found at 77.33 and 76.59/39, whereas resistance that lies at 78.68, in conjunction with 78.98/79.19 and 79.25/50, will cap the price in the meantime.
Traders' Sentiment
Despite the fact that USD/JPY has been in a downtrend for a protracted period of time, it remains overbought, as 71% of traders hold bullish positions, leaving merely 29% to those, who expect the price of the Japanese Yen to rise. Additionally, 61% of orders are buy orders, and thus provide considerable support to the pair in case it slides lower.
© Dukascopy Bank SA