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"The decision on whether further easing is necessary would depend on whether the economy and prices undershoot our forecasts, and whether such risks heighten"
- Hirohide Yamaguchi, BOJ Deputy Governor (based on Reuters)
Pair's Outlook
A downtrend resistance line that stretches from May 15 is still not allowing USD/JPY to aim for higher levels unimpeded. Therefore we are unlikely to observe notable rallies by the currency pair in the coming month. After the price goes below 79.10/78.98, the only support capable of reversing bearish trend would be encountered at 77.04, where further tendencies will be decided. Until then, USD/JPY is expected to slowly slide down.
Traders' Sentiment
An overwhelming majority of market participants (74%) stay long on USD/JPY, expecting the Greenback start appreciation relative to the Japanese Yen, given the pair's determination to overcome the resistance overhead. Moreover, 64% of orders placed are buy orders. Accordingly, sell orders constitute 36% of the total amount of commands.
© Dukascopy Bank SA