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"I think the BOJ will add to monetary easing little by little, depending on financial markets and economic indicators"
- Masashi Murata, Brown Brothers Harriman & Co. (based on Bloomberg)
Pair's Outlook
Gravity of 78.08/77.98 does not permit USD/JPY to leave its vicinity, implying continuation of a downtrend. On the other hand, supports that lie below are formidable, given their proximity to BoJ intervention levels. Nonetheless, the currency pair stays above 78.43/39 and preserves potential to reach out for 79.29/50, breach of which in turn would restore bullish outlook.
Traders' Sentiment
Despite USD/JPY being overbought for a protracted period of time, the share of bulls expanded to 74%. At the same time the number of traders believing in appreciation of the Japanese Yen is decreasing. The ratio between buy and sell orders is 58% to 43%, respectively.
© Dukascopy Bank SA