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"There is no real progress on containing welfare spending, so even if you raise the sales tax, the country's finances won't improve."
- Mizuho Securities Research & Consulting (based on Reuters)
Pair's Outlook
Pair seems to be drifting lower and outlook on it is changing from mildly bullish to mildly bearish. Indications about bearishness comes from the short term technicals as well. It seems likely we could see the pair trailing to 97 JPY. However, 200-day SMA remains a strong support, as we can see from a few days ago, and could send the pair higher. In such case, 100 JPy would remains the main interim target for us.
Traders' Sentiment
It seems that bulls are continuing to recover after a major slump in bullish sentiment in the past few weeks. At the moment they account fro 66% of market participants, that is 1% more than yesterday and 6% more since the beginning of the week. Pending orders moved in the same direction as well. At the moment 71% of them (+4% since yesterday) are also set in favour of the bulls.
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