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"Lifers' only realistic alternative assets to JGBs currently are foreign bonds. Lifers' foreign bond investment activity was unusually low in the first half of FY2013, but we expect this to accelerate."
- Nomura (based on The Economic Times)
Pair's Outlook
Pair seems to be gradually narrowing it's trading range. One could say it is developing in a Triangle pattern in a sense. The apex of such pattern would not be far away so we are facing increased probability of a major move. In case of a bullish rally it seems unlikely the pair could advance above 100 JPY easily. In case of a bearish breakout we might see some bullishness around October low.
Traders' Sentiment
Overall attitude towards the Japanese yen has been strongly bearish for quite some time. Not different are the last few days as well. Bulls hold 72% of all open positions and 67% of bullish side of pending orders are set to go long as well.
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