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"Inflation could continue to slow because oil prices are falling. Other data show the economy is recovering, but this is not really because of Abe's policies."
- Mizuho Research Institute (based on Reuters)
Pair's Outlook
After a short-term recovery of the Japanese yen, this currency fell again, as the USD/JPY currency pair returned back to hover above the 2007 Oct high around 118. This year's high is located just below the next major level at 118.97. Judging from technical indicators on a daily chart, the US dollar is likely to reach this level soon. However, weekly studies started giving mixed signals, meaning that the pair may consolidate around 119 for a long period of time.
Traders' Sentiment
The gap between bullish and bearish positions on the market remains insignificant, as 52% of them are still held by bulls. Pending orders stay strongly positive as well, meaning that market sentiment, on aggregate, is unchanged from yesterday.
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