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- Yuki Sakasai, Barclays (based on Bloomberg)
Pair's Outlook
The market has just confirmed 104.36/00 as the new support and there are now even more ‘buy' signals on the weekly time-frame than yesterday, meaning the U.S. Dollar is set to appreciate further. The currency pair should not encounter any significant obstacles until it rises up to 105.87/69, where the recently violated up-trend could enforce a notable bearish correction.
Traders' Sentiment
As it turns out, the SWFX market participants chose not to trust the technical indicators—an overwhelming majority of the traders are currently holding shorts, namely 66%, in anticipation of the buck's depreciation relative to the Yen, even though on average in their crosses the currencies are bought with nearly the same frequency.
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