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"It had become increasingly apparent that what the BOJ was doing wasn't enough and they needed to do more and it's always been a question of when they would do that. It's an excellent outcome."
- AMP Capital Investors Ltd. (based on Bloomberg)
Pair's Outlook
The Japanese currency unexpectedly lost very noticeable value during last 24 hours, as it dropped more than 220 pips to reach the monthly resistance line at 111.63 on news from the Bank of Japan. The pair climbed through a number of strong supply areas, including 2014 and 2008 highs. If the pair surpasses the next resistance, it may jump up to monthly R2 at 113.61. Otherwise, the Dollar is set to make a step back and trade below the six-year high.
Traders' Sentiment
While opened positions are still dominated by bears (67%), pending orders both in 50 and 100-pips ranges surged considerably, as now 83% of latter ones are set to buy the Dollar versus the Japanese yen, compared just to 62% on Thursday.
© Dukascopy Bank SA