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    USD/JPY fails to sustain recovery

    © Dukascopy Bank SA
    "The market's expectations for a weak yen will revive if Kuroda clearly denies such a view [that the central bank is reluctant to expand monetary easing] and affirms his strong commitment to further easing as needed." 
    - Mitsubishi UFJ Morgan Stanley (based on Bloomberg)  

    Pair's Outlook 
    Although USD/JPY closed above the resistance at 120 on Wednesday, it took a major hit yesterday, retreating all the way back to 119. Nevertheless, the outlook with respect to the US Dollar is optimistic: the technical indicators are bullish and there is a dense demand area between 119 and 118. However, in case the selling pressure intensifies, additional cluster of supports is emerging around 115.50 (100-day SMA, monthly S1 and 38.2% Fibo). 

    Traders' Sentiment 
    A decline in Buck's value did not discourage the bulls, as they remain in a majority with 58% of the market. At the same time, there are now (81%) relatively more commands to purchase the Dollar than yesterday (76%).
    © Dukascopy Bank SA

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