© Dukascopy Bank SA
"Everyone is looking to those minutes to see whether or not they [the BoJ] are going to do more easing."
- BK Asset Management (based on MarketWatch)
Pair's Outlook
The currency pair is forming a base at 118 at the moment, which is likely to act as a significant support in the future. And once the rate steps over the resistance at 119, as implied by the daily and weekly technical studies, USD/JPY will most likely pursue the 2007 high at 124. But if the US Dollar suddenly comes under downward pressure and closes beneath 117.30, the selling can persist until the 23.6% retracement of Jul-Nov rally at 115.
Traders' Sentiment
The USD/JPY continues to be characterised by indecision of traders—52% believe the US Dollar is going to appreciate, and 48% expect the Yen to outperform. As for the orders, 61% of them are placed to purchase the Buck.
© Dukascopy Bank SA