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"We are finally seeing a clear recovery in exports, led by a weak yen and a moderate global recovery. My biggest concern is the planned sales-tax increase next year. A recovery in exports will help cushion the impact but a higher levy could still be a big drag on the economy, while risks remain in Europe and emerging markets."
- Norinchukin Research Institute Co. (based on Bloomberg)
Pair's Outlook
Weekly PP/20-day SMA seemed unbreachable point for the pair despite it's mild prior bullishness. However, it seems to be recovering after hitting weekly S1/monthly PP. It should recover most of the losses today and advance above the 98.5 JPY in the nearest future. 100 JPY would become next major target after that. Second failure, could provoke a sell off to 97.5 JPY and then to 96 JPY afterwards.
Traders' Sentiment
It seems that bulls are recovering as their strengthened positions by additional 2% and at the moment they account for 62% of market participants. 58% of pending orders, which is also 2% more than yesterday, are set in favour of the bulls as well.
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