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"The Bank of Japan has set out a clear strategy of doubling the monetary base to lift inflation to 2 per cent. Incremental policy changes could dilute the impact."
- Capital Economics (based on The Financial Times)
Pair's Outlook
Pair tried to step up close to the 55-day SMA yesterday, but dipped 300 pips after unsustaining pressure from it. At the moment it is being supported by the Bollinger band slightly above the 96 JPY. For the time being we are likely to see short term rallies to 97 JPY and 98 JPY, but longer term outlook on the pair is negative.
Traders' Sentiment
Every 3 out of 4 traders in the market remain long on the greenback against the yen. It is likely that we will continue to see a bull dominated market since 61% of pending orders are set to go long on the pair.
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