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"Any comments from the Abe administration that imply additional pressure for monetary easing will be a selling catalyst for the yen. With this thin market liquidity, the exchange rates are more likely to move bigger"
- IG Market securities (based on Bloomberg)
Pair's Outlook
USD/JPY pair shows real Christmas miracles, as Shinzo Abe was approved as Japan's Prime Minister and the pair sky rocketed as a result. The major Asian currency pair opened with a 40 pip gap, driven by significant expectations to experience an another round of quantitative easing. The price has reached the 261% Fibo from the down-side wave since October 30, 2011. The next resistance level will be 85.81, where the 26-month high intersects with the weekly R3.
Traders' Sentiment
USD/JPY pair strengthens bullish bias, since the buy side reached 63% and the sell side shrunk to 37%. Pending orders segment shows significant bullish sentiments, as 89% of placed orders are buy and 11% are sell.
© Dukascopy Bank SA