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"Opponents will gain momentum to try to prevent raising the sales tax, while politicians who back it will reinforce their argument by pointing to positive consumer spending and price data. […] the economy is making a step forward to ending deflation."
- Dai-ichi Life (based on Bloomberg)
Pair's Outlook
Pair has been trailing lower for the past 30 days. At the moment it seems stable, however downside risk persists. 200-day SMA seems to be doing good job supporting the pair. In case the pair dips below the 200-day SMA, we could easily expect for it to trail lower, most likely till 95-94 JPY. Short term rallies should remain capped by the 20-day SMA at 97.5 JPY.
Traders' Sentiment
Market sentiment remains exactly the same as in the end of the last week—74% of traders are long on the pair. Distribution of pending orders, however, changed noticeably. Pending bullish orders decreased by 7% and is at 61% gauge.
© Dukascopy Bank SA