© Dukascopy Bank SA
"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
As expected, 79.50/61 proved to be a notable resistance area by deflecting USD/JPY and sending it down to an interim level at 79.25/03. Subsequent supports are at 78.71/59 and 77.98, though the latter will hardly be reached, given that the pair preserves potential to advance and should eventually erode 79.50/61 and soar up to 80.87/81.08.
Traders' Sentiment
An absolute majority of market participants, namely 74% of traders, stay long on USD/JPY, whereas merely 26% of traders foresee appreciation of the Japanese Yen against the greenback. Furthermore, bullish sentiment is backed by a large number of buy orders, which constitute 70% of the total amount of orders.
© Dukascopy Bank SA