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"The BOJ easing did not cause yen to rally earlier this year, rather the yen rallied despite the central bank's actions, mostly because investors are unclear about the impact of negative rates. That suggests that further moves in the yen would be limited."
- Commonwealth Foreign Exchange (based on MarketWatch)
Pair's Outlook
The US Dollar was unable to post gains against the Japanese Yen or pierce the 55-day SMA on Monday, resulting in a 63-pip loss over the day. The USD/JPY currency pair remained above the 111.00 mark, but now risks edging even lower, unless the demand area around 110.30 in face of the 20-day SMA, the weekly PP and the monthly S1 is sufficient to cause the bullish momentum to return. The upward border is still represented by the 55-day SMA and the trend-line, which is bolstered by the monthly PP, the Bollinger band and the weekly R1. Meanwhile, technical indicators are giving mixed signals, unable to confirm either scenario.
Traders' Sentiment
There are 72% of traders holding long positions (previously 73%), while the number of purchase orders increased from 47 to 70%.
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