© Dukascopy Bank SA
"Portugal exiting its bailout as smoothly as Ireland seems unlikely. The prospect of a second bailout is becoming higher."
- Barclays (based on Bloomberg Business Week)
Pair's Outlook
Pair failed at weekly and monthly PP/20-day SMA as is slowly trailing lower. After this it seems that it is range bound between the 132.5 and 131.5 JPY. Weight on this perspective is added by the fact that quite a few individual technical indicators give neutral outlook on the pair. In case the pair advances above 132.5 we could expect resistance around 133.6. If it falls below 131.5 we could expect it to trail to 130 JPY. There we should revaluate the situation as bullish rally would become rather possible.
Traders' Sentiment
It seems that bulls still have the intention to push the pair higher. At the moment they account for 56% of market participants, that is 6% more as yesterday. At the same time bullish side of pending orders increased by 5% since yesterday and is at 65% gauge.
© Dukascopy Bank SA