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"Even if Mr Kuroda refrains from hinting at more easing, it helps to recall that he has been willing to spring a surprise in the past. We stick to our view that the Bank [of Japan] will announce more easing at its end-October meeting."
- Capital Economics (based on WBP Online)
Pair's Outlook
The US Dollar began weakening against the Yen, after having reached the 120.63 potential resistance yesterday. Losses, in turn, were limited by the 20-day SMA, which prevented the USD/JPY from dropping to the 120.00 major level. Nevertheless, the Greenback risks breaching this area today and even pierce the support cluster around 119.80, while the any attempts to rebound are likely to be held by the same 120.63 mark, which is keeping the US currency from edging higher for almost six weeks now.
Traders' Sentiment
Bulls account for almost three quarters (73%) of the market (previously 70%). The number of orders to purchase the Buck also increased, from 58 to 64%.
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