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"Investors might have wanted to hear more details on the inflation target from the BOJ, pushing the yen higher. The policy decision itself came in line with expectations"
- Barclays Plc. (based on Bloomberg)
Pair's Outlook
USD/JPY currency pair slips lower after yesterday's new peak at 84.60. The price is at the highest level since April of 2012 and this level was reached by rapidly appreciating, while the RSI indicator has a value of 70. But more importantly there is a divergence between the price and the RSI, as the price made a third notable peak and the RSI just swings around the 70 level. The potential support levels are: 83.67, the monthly R1, and slightly lower, at 82.91, the 20-day SMA.
Traders' Sentiment
SWFX market participants eliminate buy positions and the current numbers indicate about some confusion in this pair, as the buy side has 49% of positions and the sell side has 51%. Pending orders segment remains harshly bullish, which will support any down-side impulse, as 85% of orders are buy and 15% are sell.
© Dukascopy Bank SA