© Dukascopy Bank SA
"Expectations are running ahead, and they will eventually peel off. We're unlikely to see anything surprising anytime soon, even after the BOJ's new leadership is installed, and that will give a catalyst to buy the yen."
- Brown Brothers Harriman & Co. (based on CNBC)
Pair's Outlook
USD/JPY is traded at a more than three-year high, as the price increased to the monthly R2 level at 96.37. Today the price fluctuates around this level, as further movement is constrained by long timeframe technical indicators, which signals about a heavily oversold situation. Moreover, the weekly RSI provides a value of 86 and a divergence of current price's high and RSI's value.
Traders' Sentiment
Traders still open more long positions than short, as the bullish share of the market increased to 77% and the sell side shrunk to 23%. Placed orders segment has very similar sentiments, as 76% are waiting for a long position and 24% for a short.
© Dukascopy Bank SA