© Dukascopy Bank SA
"After a strong second quarter, many observers had predicted a quick slowdown of the German economy in the second half of the year. Up to now, it looks as if the economy is gaining rather than losing momentum. Germany confidence is not only benefiting strong domestic economic activity and hopes of a soft and not hard landing of emerging economies, but also from the latest improvements in the euro zone."
- ING (based on The Globe and mail)
Pair's Outlook
For quite some time the pair was range bound, however, yesterday it received a strong bullish impetus from the (weekly and monthly PP; 20, 55 and 100-day SM area and at the moment is testing weekly R2/monthly R1 at 132.3. If the pair consolidates above this level we could start looking at may high around 134 JPY, but as things are right now it does not seem that the pair could breach it with ease. Even taking in mind the readings of long term technicals.
Traders' Sentiment
The advantage of the bears over bulls has slightly increased since the last report, since the share of the long positions has fallen to 44% and the share of the short ones is now 56%. Meanwhile, the distribution between the buy and sell orders is 56% to 44% respectively.
© Dukascopy Bank SA