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"BoJ policy is already sufficiently bearish for the JPY just with the continuation of the present QQE. JPY bears would not need to have concerns on the absence of further easing ."
- Daiwa Securities (based on Reuters)
Pair's Outlook
The ISM Non-Manufacturing PMI outweighed the poor ADP Non-Farm Employment Change data, which resulted in the USD/JPY surge on Tuesday. However, the pair was unable to stay near the 125.00 major level, but might test it again today. Trade opened above the weekly R1 and upper Bollinger band, which are providing rather strong support and should cause another rally today. Nevertheless, poor US fundamentals could still push the Greenback lower, despite bullish technical indicators.
Traders' Sentiment
Market sentiment improved again, as 73% of all positions are long today, compared to 67% yesterday. Meanwhile, the number of orders to acquire the Buck also increased, from 65 to 72%.
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