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"Investors are asking whether Japan really has the will to rebuild its finances. If we don't go ahead, it's highly likely they will pull out of Japan."
- Liberal Democratic Party tax panel member (based on Bloomberg)
Pair's Outlook
100 JPY seems to have capped the pair and is likely to keep it below this psychological level in the nearest future as well. 101.4 should be a good interim target. Consolidation above it would pot higher levels on the map. However, 100 PY could easily force the pair to fail in which case 98.8 (20, 55 and 100-day SMA) should be the nearest term target.
Traders' Sentiment
We are observing further deterioration of bullish sentiment. At the moment long traders count for 62%, that is 2% less than yesterday, of market participants. Majority, 60% if to be exact, of pending orders remain bullish, but it is 4% less than yesterday.
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