© Dukascopy Bank
"Investors are beginning to doubt the BOJ will continue to ease monetary policy"
- Toyota Asset Management Co. (based on Bloomberg)
Industry outlook
After being rejected at 83.40, the currency pair is currently pulling back to 81.08. In case the latter level does not provide sufficient support, downward move may extend to 80.11. The nearest resistance, on the other hand, is at 82.20/40.
Traders' sentiment
Bulls continue to dominate USD/JPY as they constitute 74% of all the market participants, which can be explained by the Japanese Yen being the least popular among the major currencies.
Long position opened
Investors should pay close attention to the identified resistance levels for the pair at 82.96, 83.84 and 84.39.
Short position opened
Major market participants with short positions will hold their deals until the price slides down to the initial support level at 81.53. If the price continues the downtrend, the dealers might wait for the price to depreciate down to 80.98 or 80.10.
© Dukascopy Bank