USD/JPY breaches a new high

USD/JPY breaches a new high

'Expectations for additional easing by the BOJ haven't yet peeled off. With rising implied volatility, there are quite a few people who are alerted by the pace of dollar-yen moves.' - Sumitomo Mitsui Banking Corp. (based on Bloomberg)

Pair's Outlook

USD/JPY pair increases further by peaking at a new high. The major Asian currency pair recovered the bullish impetus after a two-day correction and appreciated sharply during yesterday's session. Today the pair reached 90.20, the monthly R2 level. The closest resistance level is at 90.50, where the weekly R1 merges with the Bollinger line, and, in a slightly longer perspective, there is the 423% Fibonacci resistance level at 90.94 from a bearish wave since the 31st of October.

Traders' Sentiment

Short traders increase their share in SWFX market, since 38% of positions are long and 62% are short. Pending orders situation is noticeably bullish, as 69% of orders are long and 31% are short.