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"The BOJ sees no need now for more aggressive actions. However, it is likely that with the government tightening fiscal policy, political pressures remain on the BOJ to ease further in the coming months"
- Brown Brothers Harriman (based on MarketWatch)
Pair's Outlook
USD/JPY closed below 79.46/35 yesterday and is about to hit subsequent level at 79.17/03, penetration of which will expose 78.85. Since the currency pair is now more likely to focus on supports, extensive rallies might not appear until supports at 78.39 or even 78.08 are reached. In case they do occur, formidable resistances at 79.35/45 and 79.63/70 will stand in their way.
Traders' Sentiment
The Japanese Yen is the least popular currency, as traders buy it only in 26% of cases, accordingly, most of positions specifically on USD/JPY are long, constituting 74% of the market and leaving only 26% of it to those who expect the price of the greenback to depreciate against the Yen in future. Moreover, 69% of orders placed on the pair are to buy the U.S. Dollar.
© Dukascopy Bank SA