© Dukascopy Bank
"Even if they [BoJ] get 5 trillion yen extra in asset purchases it probably won't be enough because the market is expecting so much. We recommend holding dollar/yen shorts going into the [BoJ] meeting"
- Nomura (based on CNBC)
Industry outlook
Bearish correction is likely to be over at 80.29 and USD/JPY should now commence recovery. The initial resistance lies at 81.78, while 82.03, 83.31 and 84.19 will also attempt to hamper bullish advancement.
Traders' sentiment
USD/JPY remains overbought. The majority of traders (72%) keep on holding long positions, leaving only 28% to bearish market participants.
Long position opened
Leading market participants, who have entered USD/JPY market with a buy trade, are expecting to close their positions at the key resistances at 81.60, 81.95 and 82.34.
Short position opened
The immediate support line is at 80.86. Should the price step even lower, it will encounter subsequent levels at 80.47 and 80.12, where recovery might start.
© Dukascopy Bank