© Dukascopy Bank
"The BOJ will probably have to continue easing for at least the next two years as the end of deflation is very far"
- Bank of America Merrill Lynch (based on Bloomberg)
Industry outlook
USD/JPY is supposed to gradually erode a resistance at 81.43, provided that the pair does not breach a support level situated 80.29/11 in the interim, which is currently guarded by 80.40. In the longer term perspective USD/JPY should target 85.53.
Traders' sentiment
Since the Japanese Yen is the least popular currency at the moment among its major counterparts, traders' sentiment is presently bullish to a significant extent (74%) on USD/JPY.
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 81.37, 81.78 and 82.13.
Short position opened
Largest investors might have placed their take profit orders at the key support levels. These levels for intraday trading are situated at 80.61, 80.26 and 79.85.
© Dukascopy Bank