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"Those who just trade on news headlines sold dollar/yen after the BOJ. But the BOJ's latest stance is quite aggressive as it plans to keep easy policy until deflation ends, thus likely to keep the dollar supported"
- Bank of Tokyo-Mitsubishi UFJ (based on Reuters)
Pair's Outlook
Latest price action indicates increased possibility of a further appreciation of the U.S. Dollar relatively to the Japanese Yen, as during the recent consolidation phase the 200-day SMA successfully underpinned USD/JPY, preventing a reversal. The nearest resistance is at 80.27, followed by 80.54 and 80.89/90, while 79.74/59 should act as a floor for now.
Traders' Sentiment
SWFX sentiment towards USD/JPY is largely unchanged, as bulls continue to dominate the market with 73% of positions being long, as the greenback is the most popular currency at the moment among its major counterparts. Accordingly, merely 27% of traders believe a rally on a USD/JPY chart will not emerge. The portion of buy orders is 82% and thus supports overall positive bias.
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