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"The short-term acceleration of USD/JPY appreciation will automatically lower BOJ easing expectations again. Japanese investment in foreign assets may also slow again, as JPY weakness helps pension funds to reach their target portfolios without actual purchases."
- Nomura (based on FXStreet)
Pair's Outlook
The USD/JPY tested both the immediate resistance and the support, but ultimately suffered a slight decline of 20 pips. The situation today remains similar to yesterday, namely a fall is expected. The 20-day SMA and the weekly PP keep providing resistance around 120.20, while the weekly S1 and the Bollinger band support the pair from below around 119.30. However, according to the technical studies, the Greenback is supposed to weaken against the Yen today, despite the pair's efforts to climb during the Asian session.
Traders' Sentiment
Bulls keep gaining numbers, as 68% of all positions are now long, compared to 61% yesterday. The number of purchase orders, on the other hand, declined 13 percentage points to 44%.
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