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"Earnings across the board are likely to be strong. While the market has priced in a lot of it, I don't think it has factored in the full potential for positive earnings yet because investors are still in wait-and-see mode. But the overall trend is for stocks to keep rising."
- Shinkin Asset Management Co. (based on Bloomberg)
Pair's Outlook
Yesterdays peak above the 100 JPY went well along with the readings of technical indicators. However, pair did not manage to consolidate above this important psychological level and at the moment seems to be stuck slightly below it. It all indicates that pair is still facing significant downside risk and bias is bearish. Although it is rather unlikely that the pair could fall below 98 JPY. Short term rallies should be capped by 102 JPY.
Traders' Sentiment
We are seeing some minor changes in market sentiment. Distribution of open positions remains highly skewed to the bull side (71%). However, for the first time in more than a week majority (54%) of pending orders are set to go short on the pair.
© Dukascopy Bank SA