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"The BOJ did not deliver as much easing as was initially expected, and as a result, the yen also didn't depreciate as much. The BOJ is seen as being very timid"
- HSBC (based on Bloomberg)
Pair's Outlook
The currency pair is anticipated to sustain its current rally and push through resistance at 79.50/57, though the breakout might take several tries to realise, as technical indicators remain neutral for now. Probable retracement of USD/JPY should not extend below 79.08/03, ahead of which the price is expected to stabilise and take a course on 80.87/81.08.
Traders' Sentiment
Even though the share of bullish market participants has fallen, the general bias is strongly positive, being that long positions form 71% of the market, leaving merely 29% to those, who view the Japanese Yen as capable of appreciating against the U.S. Dollar. Additionally, 76% of orders are to buy the greenback and only 24% are to exchange it for the Asian currency.
© Dukascopy Bank SA