© Dukascopy Bank SA
"The key for the success of Abenomics is whether companies will raise wages. Companies still aren't confident enough that growth will be sustained and will probably hesitate to raise wages, especially base salaries, for the time being."
- Mizuho Securities Research & Consulting (based on Bloomberg Businessweek)
Pair's Outlook
Pair continue to narrow it's trading range (which look like a Triangle pattern) and despite the aggregate reading of short and medium term technicals we expect a bullish breakout. Pair just have to consolidate above 55,100 and 200-day SMA's which would put 100 JPY on the map. In case of an unexpected failure we should start looking at the October low at as failure there could send the pair as low as 95 JPY.
Traders' Sentiment
Situation in the market remains similar to the one yesterday. Bulls account for 74% of market participants, which is 2% more than yesterday. Bullish side of pending orders decreased by the same 2% and is at 65% gauge.
© Dukascopy Bank SA