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"There's no change to our policy of trying to achieve 2 percent inflation at the earliest date possible, with a roughly two-year time horizon in mind."
- Bank of Japan Governor (based on Reuters)
Pair's Outlook
As predicted both by daily and weekly technical studies, the USD/JPY currency pair continues to gain value. However, the cross is nearing a considerable resistance around 114.70, which is strengthened by Dec 2007 high. This level is able to stop the Yen's depreciation for some time, but a bounce back to the levels seen in the beginning of the week is not likely. If the resistance eventually gives up, then a climb towards Oct 2007 high at 117.96 should be considered at the next goal of the pair.
Traders' Sentiment
Bearish positions for USD/JPY cross increased their majority to 57% over past 24 hours. Despite that, pending orders remain extremely positive, with 71% of them set to buy the US Dollar in 100-pip range.
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