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"The new year will be very positive, with stocks boosted by likely additional easing by the BOJ and corporate earnings growth."
- Monex (based on Reuters)
Pair's Outlook
Despite all the recent attempts of USD/JPY to conquer 121, the weekly and monthly R1 levels stay intact. But once this resistance gives in, the 2014 high at 122 may not be able to stop further advancement of the currency pair. Meanwhile, the US Dollar is set to cede some of the recently gained ground. Considering absence of any notable supports nearby, the dip may extend down to 118, where it will meet the lower boundary of the bullish channel.
Traders' Sentiment
The SWFX traders remain neutral with respect to USD/JPY, as the shares of long and short positions open on the pair are nearly equal—52 and 48%, accordingly. But the percentage of buy commands has plummeted since the last report—from 76 to 57%.
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