© Dukascopy Bank SA
"The birth of the Abe administration is spurring expectations in markets that deflation will end. Markets are anticipating that the government will clarify its willingness to bring the yen down"
- Union Bank NA (based on Bloomberg)
Pair's Outlook
USD/JPY pair keeps a rapid appreciation pace, but this increase does not seem to be sustainable, as the price rises too quickly. The currency pair broke a 16-month high and is already very close to the highest point since September, 2010. Technical indicators imply strongly overbought condition, as the RSI has a value of 78 in a daily graph and 76 in a weekly graph. Also, the price has not closed the gaps at 84.91-85.20 and lower at 83.53-83.58.
Traders' Sentiment
USD/JPY pair changes to neutral for traders' sentiments standpoint, since 51% of traders have long positions and 49% have short positions. Pending orders market keeps its strongly bullish sentiment, as 85% of orders are buy and 15% are sell.
© Dukascopy Bank SA