© Dukascopy Bank SA
"The market is bringing forward its expectations for Fed tightening , or at least has more confidence rates will rise in the U.S ."
- Royal Bank of Canada (based on Bloomberg)
Pair's Outlook
Pair started the week at the weekly and monthly PP and was almost immediately pushed down. It dipped almost till the 141 JPY, but at the moment is hovering slightly above the 20-day SMA. We expect it to continue to demonstrate bearish bias in the nearest future and think it could trail as low as 140 JPY in the medium to long term. Only a solid close above 142 JPY could allow it to climb higher.
Traders' Sentiment
We are receiving mixed signals regarding market sentiment. Bullish side of open positions contracted by 3%, after expanding the same amount on Friday and is back at 45% gauge. Distribution of pending orders moved between 4% up and 14% down depending on the range around the current market price.
© Dukascopy Bank SA