USD/JPY Stops At 23.6% Fibo

USD/JPY Stops At 23.6% Fibo

'More easing won't necessarily boost growth, so the BOJ might shift its focus to growth from inflation. Boosting bank lending wouldn't weaken the yen.' - Brown Brothers Harriman (based on CNBC)

Pair's Outlook

Following an explicitly bullish week USD/JPY was bound to enter a consolidation phase. The currency pair was halted only at 103.38/34 (23.6% Fibo) after covering more than two figures. It may now spend several days between this resistances and the support at 102.88/71 (55 and 100-day SMAs) before regaining bullishness. Then the U.S. Dollar will be well-positioned to launch yet another assault on the 2013 highs at 104.

Traders' Sentiment

Appetite of the market for a surge is growing, as evidenced by an expanding share of long positions. Right now as many as 75% of traders expect to profit from buck's appreciation, while last Friday they accounted for 72% of the market.