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"Foreign bonds will be the main alternative to domestic bonds considering their lower risk and volatility compared to domestic shares."
- Bank of Yokohama (based on Bloomberg)
Pair's Outlook
Pair seems not only remaining in a range, but narrowing it as well—150, 120, 90 pips in recent sessions and 60 pips today. It is likely it cannot break away from the pressure it is receiving from the 55-day SMA. All in all, pair is facing significant downside risk and only a strong rally above 99 JPY or even only a closure above 100 JPY could change the pairs outlook to bullish.
Traders' Sentiment
Market participants maintain extremely bullish stance towards the pair—75% of all open positions on the pair are long. In addition, 62% (1% more than yesterday) of pending orders are set to buy the greenback against the yen.
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