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"Even though the Bank of Japan has shown no sign that it is preparing new stimulative measures, many in the market, still smarting from last year's surprise expect additional easing to be announced at the end of the month."
- BBH (based on Reuters)
Pair's Outlook
As was anticipated, improvements in the US fundamentals on Friday caused the USD/JPY to overperform and breach the 119.20 resistance. The pair reached the set target of 119.70, but failed to remain that high, falling back and settling at 119.40. The Greenback is likely to undergo a correction today, with the nearest support now located at 119.23 in face of the weekly PP. However, the Buck remains quite volatile and could still surprise to the upside, while technical studies are mostly supporting the bearish outcome.
Traders' Sentiment
There are 70% of traders being long the US Dollar today, compared to 73% on Friday. Meanwhile, the gap between the buy and the sell orders remains minimal (2% points), with sellers in the majority.
© Dukascopy Bank SA