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"The recent rally has been so big that the market is taking a pause, even though the yen's drop is a plus. Investors are sitting on the sidelines ahead of the U.S. jobs data."
- Nissay Asset Management Corp. (based on Bloomberg)
Pair's Outlook
Pair advanced above the major level of 100 JPY. As stated earlier this lifted a significant portion of the downside risk from the pair; indicated by the technical indicators as well. Bulls can now start setting there eyes to the May high at 103.7 JPY. Weekly R2 and monthly R1 pivots might cause some bumps on the way, but we should not expect any major turbulences before the 103 JPY.
Traders' Sentiment
There is almost no questions about the fact that we should continue to see a market dominated by the bulls. Strong support for this is given by few facts—share of open positions controlled by the bulls has not fallen below the 70% for a month or so already; and 57% of all pending orders are set to go long.
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