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    USD/JPY on the edge of breaking ten-month support

    © Dukascopy Bank SA
    "We look for annual headline inflation to slip into negative territory ( 0.2% to -0.1%/y) while core inflation should hold firm at 1.8%/y (all as mkt expects)." 
    - TD Securities (based on FXStreet) 

    Pair's Outlook 
    Although the Buck broke out of its four-week consolidation range, the wider trading range remains intact. Technical indicators are now giving bearish signals, but a tough support rests near 118.50, as it held the pair from falling since February 2015. Another set of very weak data is required to push the USD/JPY beyond this level; therefore, a rebound is possible, with the Greenback's upside border lying around the 120.00 level, also surrounded by a number of resistances. However, risks of breaking the 118.50 support also persist, which could then trigger a sharper fall towards the Jan low. 

    Traders' Sentiment 
    Bullish market sentiment returned to its Tuesday's level of 74%, whereas the portion of buy orders sharply dropped from 76 to 49%.
    © Dukascopy Bank SA

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