USD/JPY pares losses of Jan 28

USD/JPY pares losses of Jan 28

'There is a general upbeat tone to markets. The Bank of Japan is going to maintain a more dovish policy setting for longer. That's what's underpinning this yen weakness.' - Westpac Banking Corp. (based on Bloomberg)

Pair's Outlook

After only a sole bearish daily candle USD/JPY has recommenced growth that should not meet any strong resistances until 92.27, the most probable point of contact with the upper edge of the bullish channel, apart from it being a weekly R1. Technical studies are mixed but the latest price action should encourage bulls, since the pair appears to preserve upward momentum.

Traders' Sentiment

SWFX traders' sentiment is almost perfectly neutral with respect to USD/JPY, even though the Yen is more popular in the market than the Dollar on average in their respective crosses. The share of bulls is 51%, whereas the bears constitute 49% of the market. Concerning orders, there is a clear prevalence of buy orders (84%) over sell ones (16%).