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"The governing council wants to make clear that the downward bias is not mere rhetoric or hyperbole, but is a deeply entrenched willingness to take unprecedented steps in further easing if so required."
- RBC Capital Markets (based on Barron's)
Pair's Outlook
Surprisingly, the pair failed at weekly PP and at the moment is hovering above the 140 JPY. We expect it to consolidate here as bears most likely will be capitalising there gains ahead of possible turnaround, which at the moment seems very unlikely. In order to neutralise most od this downside momentum the pair should peak at least above the 141 JPY. Future depreciation remains very likely, but should find support at 139.68/24 for the time being.
Traders' Sentiment
Market sentiment itself is virtually unchanged—at the moment bulls hold 51% of all open positions. Bullish side of pending orders, however, increased from 60% till 70% during the weekend suggesting bulls might dominate the market soon.
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