© Dukascopy Bank
"The BOJ will probably add to monetary easing later this month"
- SMBC Nikko Securities Inc. (based on Bloomberg)
Industry outlook
USD/JPY is expected to step down to 81.08, which should not be able to provide sufficient support and allow for a deeper drop - down to 80.11. Rallies are to be contained by 82.72 and 83.31/39.
Traders' sentiment
The Japanese Yen is currently the least popular currency among its major counterparts, thus most of traders (74%) are staying long on USD/JPY.
Long position opened
Investors should pay close attention to the identified resistance levels for the pair at 81.70, 81.92 and 82.18.
Short position opened
Major FX traders expect the price to test the initial support level at 81.22. The breakout of this line will pave the way for the price to test S2 at 80.96 and S3 at 80.74.
© Dukascopy Bank