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"Policy expectations are behind the continuous decline in the yen because the Abe administration gives priority to measures against deflation and a stronger yen"
- Bank of Tokyo-Mitsubishi UFJ Ltd (based on Bloomberg)
Pair's Outlook
USD/JPY carries on advancing along the accelerated up-trend support line, effortlessly piercing through previous highs and other resistances. The next probable target of the price lies at 87.60, but it is also deemed incapable of negating current bullish impetus. The subsequent level at 89.17, on the other hand, poses a much larger threat to the recovery, as it has played a major role in shaping behavior of USD/JPY late 2010 and early 2011 and may still be topical for the market.
Traders' Sentiment
SWFX traders' sentiment is more or less neutral on USD/JPY, being that 54% of traders are long and 46% of them are short, as both currencies are among the most popular. The situation is rather different when taking a glance at pending orders, where 88% of traders plan to acquire the U.S. Dollar.
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