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"By not acting, the BOJ might risk its credibility. Such a circumstance would not only render my outlook unfeasible but would also undermine the feasibility of the 2 percent target."
- Sayuri Shirai, BoJ board member (based on Reuters)
Pair's Outlook
For the fifth consecutive day the USD/JPY cross has been hovering around 118, which is holding the pair from going in any direction. From the south it is well-supported by monthly R2 and weekly pivot point around 117.30. Therefore, a further upside movement is more likely in the foreseeable future. This scenario is also suggested by technical indicators in short and medium-term ranges. The next resistance is located at 118.97 (2014 high).
Traders' Sentiment
Market sentiment on the USD/JPY pair is still undecided, as bulls' advantage over the bears remains at 4%. Distribution of pending orders, in turn, is more pronounced in favour of bulls, as 62% of them are positive on the Buck in 100-pip range from current price.
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