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"Stocks rose a bit too strongly last week, so investors are reversing those trades. While U.S. jobs data signal the Fed is unlikely to taper soon, the yen rose so it's negative for Japanese stocks as it leads to risk-off sentiment."
- Sumitomo Mitsui Trust Bank Ltd. (based on Bloomberg)
Pair's Outlook
At some point pair has dipped by more than 120 pips this week, but found support with the weekly S1 and recovered half of those loses up till now. However, it seems rather evident that pair is depressed by 20, 55 and 100-day SMAs and, as suggested by the short term technicals, should maintain mildly bearish stance. Plus, the majority of pending orders are set to go long suggesting that majority of the traders are waiting for a dip as well.
Traders' Sentiment
Bulls are increasing their pressure in the market further. Although they continue to account for 71% of market participants the share of pending bullish orders increased by 5% and is at 66% gauge.
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