Can anything reverse the weak USD sentiment now?

Japan's core Consumer Price Index (CPI) rose 0.25 y/y in Sep, less than
market's expectation of a 0.3% y/y gain (headline 0.6% y/y rise was
within expectation) while the core-core CPI fell 0.5% y/y in Sep,
worsening from a 0.4% y/y fall in Aug. This led the market to scale
back expectations of a second rate hike by the Bank of Japan (BOJ)
before end of 2006, and could help prevent further USD/JPY decline.
USD/JPY's support continues to be around 118.00-10, while resistance is
around 118.70-119.00, then 119.20. As mentioned in an earlier blog
posting, we could see a mass liquidation of the record level of USD longs...