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"They were worried that if they dropped ‘considerable time' that markets would think rate hikes were imminent. What they are doing here is slow-playing the transition."
- Barclays (based on Bloomberg)
Pair's Outlook
The cross received a bullish impetus around the weekly S1 at 116.91 that let the pair to touch the 119 level. Currently, USD/JPY is fluctuating slightly below the weekly PP at 119.38; although, if the pair keeps its pace then it will be breached. The target remains to be the psychological level at 120; however, the lack of bullishness in technical indicators is limiting the bullish potential.
Traders' Sentiment
The sentiment of the SWFX market participants have not changed since the last time of writing and it remains neutral with respect to USD/JPY - 52% of the market participants are long. At the same time the amount of the buy orders has increased substantially - reaching 79%.
© Dukascopy Bank SA