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"Markets are increasingly convinced that the Bank of Japan will continue to ease monetary policy till deflation is overcome, supporting the dollar-yen rate"
- Bank of Tokyo-Mitsubishi UFJ Ltd. (based on Bloomberg)
Pair's Outlook
The first test of bullish momentum is underway, since the currency pair has reached the level of a previous high and the weekly R1 at the same time—80.27/37. Successful penetration of this mark will pave the way towards 80.61 while preserving capability to advance even further, to 80.89/90. Nonetheless, by giving mixed signals technical indicators suggest such scenario may be postponed.
Traders' Sentiment
There appears to be no change in the mood of the market with respect to USD/JPY, since at the moment the ratio of long to short positions is 73% to 27%, respectively, just as yesterday. Besides, the amount of buy orders (82%) by far exceeds the amount of sell orders (18%), reinforcing the general bullish outlook.
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