USD/JPY dips from monthly R2

USD/JPY dips from monthly R2

"People were cottoned onto the open-ended asset purchases, and that sounds very impressive, but then when they looked at the details they realised that that open-ended program won't start until January 2014, so that's quite a long way off." - Commonwealth Bank (based on ABC News)

Pair's Outlook

Initially it seemed that a fall from 90.12 will be just a temporary setback, but todays events, when it once again failed to advance above the mentioned level and depreciated by 130 pips, raises some concerns. Very likely scenario is that pair will dip to 88.5 and then resume its recovery, as suggested by daily and weekly technicals. In such case traders should focus on 90.7/91.0 area.

Traders' Sentiment

Market is becoming even more bullish-long traders now constitute for almost half of market participants when there was only 42% of bulls in the market yesterday. Same bullishness can be seen in pending orders as well-72% of them are to go long.