USD/JPY hovers around 96.00

USD/JPY hovers around 96.00

'The yen got a bit of a bounce from the trade deficit being narrower than expected. Longer term, market expectations for policy easing from the new BOJ continue, keeping pressure on the yen to weaken, just not at the pace we've seen over the past several months.' - Mizuho Trust & Banking Co. (based on Bloomberg

Pair's Outlook

USD/JPY finished yesterday's session around a 96.00 benchmark, as the price failed to step a bit higher and test an interception point of the monthly R1 and weekly R2 at 96.37. The pair lost significant bullish momentum, which has been pushing the pair higher for the previous four months, as the price has been traded flat around a 95.00 level since the beginning of February.

Traders' Sentiment

Traders exhibit high expectations of the Yen depreciating to a four-years low, since 89% of positions are long and only 11% are short. Pending orders market has 73% of long orders waiting to sell the Yen.