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"The fact that the easing move on Friday was a surprise provides the market with some scope to 'chase' as USD/JPY rises to reflect the policy surprise, and any pull-back is likely to be shallow as market participants use the opportunity to 'buy the dip'."
- Goldman Sachs (based on CNBC)
Pair's Outlook
Yesterday, the USD/JPY pair decided to test the strong resistance line around 114.70, but was forced to give up this idea after several unsuccessful attempts to do that. Now the pair is trading right below the 2007 Dec high at 114.39. Taking into account positive technical indicators on the daily and weekly charts, we can still expect more attacks on the mentioned resistance to take place in the foreseeable future. Otherwise, the pair will be set to move sideways for some period of time.
Traders' Sentiment
No major changes were noticed in market sentiment for USD/JPY cross. Bearish positions take up 56% of all, while pending orders in both ranges remain strongly positive at the moment.
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