© Dukascopy Bank SA
"Whether the yen's strength will persist or not is a key. If it does, companies' earnings will be trimmed, and investors are extremely concerned that the incentive to chase the Japanese market higher will be erased."
- Investrust (based on BBC)
Pair's Outlook
Pair is continuing to trade in the 100-day SMA vicinity (97—98.5 JPY range). Pair outlook is rather positive, but it might be that 55-day SMA could significantly slow down its advancement. If the pair manages to breach it, test of 100 JPY level is almost imminent. However, we should not forget that pair is still facing some downside risk and sell offs till 95.5 JPY and 94 JPY are possible as well.
Traders' Sentiment
Extremely bullishness is likely to continue in the market for quite some time. Such conclusions can be made from the fact that 72%, the same as yesterday, of positions are already long on the pair; and 61%, 3% more than yesterday, of pending orders are set to go long on the pair as well.
© Dukascopy Bank SA