© Dukascopy Bank SA
"If the BOJ meeting passes off without any new policy initiatives on Wednesday, then I would expect to see dollar-yen probably back down to the lows that we saw last week"
- Ray Attrill, National Australia Bank Ltd. (based on Bloomberg)
Pair's Outlook
Friday's sharp rally did not develop into a full-blown recovery, but instead was halted by resistance at 78.35/64, implying that the pair does not carry neither upward not downward impetus and should stay bound by 78.82/99 from above and 77.71/49 from below until USD/JPY reaches an intersection of a downtrend resistance and a support line (supposedly in mid-November), which is a vertex of a descending triangle.
Traders' Sentiment
An overwhelming majority of traders (74%) are bullish towards USD/JPY, while only 26% of them expect the Japanese Yen to gain value, even though it is the least popular currency and on average is acquired in 28% of cases. The ratio between buy and sell orders also favours bullish bias, being 72% to 28%, respectively.
© Dukascopy Bank SA