USD/JPY surpasses Aug 2009 high

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Given [the BOJ's] intention to expand the monetary base considerably over the coming two years we see little scope for USD/JPY to change its last few month's uptrend anytime soon."
- Credit Agricole (based on MarketWatch)


Pair's Outlook

The rally initiated last Thursday has penetrated a number of notable resistances, including Aug 2009 high at 97.81 most recently. Still, 98.73 managed to provide a reprieve from the surge by starting a sell-off that may close the upside gap. There could also be a deeper correction, down to 96.73/50 (up-trend support) or even 95.07/94.29 (Feb 11 high).

Traders' Sentiment
A substantial part (71%) of SWFX marketplace participants believe the Dollar is going to increase in value relative to the Japanese Yen, as the latter currency is the least preferred among traders—bought in only 25% of cases. Traders appear to be also willing to buy on dips, being that 75% of orders placed on the pair are the buy ones.
© Dukascopy Bank SA

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