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"We expect the Bank of Japan to increase its asset buying fund by 5 trillion yen. If it does, the dollar might have a chance to break resistance around 79.50 yen"
- Citibank (based on CNBC)
Pair's Outlook
Downtrend resistance line was unable to contain the pair, allowing it to take a course on the 200 day SMA and recent high at 79.65/73, above which there are few resistances capable of impeding growth of the price. Prior to that, however, USD/JPY will face 79.31/38, which is also unlikely to give in easily and therefore poses a threat to the current surge.
Traders' Sentiment
While the U.S. Dollar is the most, the Japanese Yen is the least popular currency pair in SWFX marketplace, being bought in 66% and 27% of cases on average in their crosses, respectively. Orders also favour development of a rally, since 73% of them are buy orders and merely 27% are sell orders.
© Dukascopy Bank SA