© Dukascopy Bank SA
"The ECB and BOE gave the market confidence by trying to contain the rise in yields, thus boosting shares. The yen's current level is very good for corporate earnings. It's helping companies invest a bit more in Japan after increasing capital spending abroad to escape from a stronger yen."
- DIAM Co. (based on Bloomberg)
Pair's Outlook
Pair did not manage to gain momentum and vigorously advance above the 101 JPY. However, 55 day SMA did not allow the pair to return to the zone of significant downside risk; at the moment is is trading at the weekly R1. Pairs outlook remains strongly positive, but it is highly doubtful we will see major moves before at the end of the trading week. Pair is likely to test 101 JPY at the start of the new week.
Traders' Sentiment
Stance of the traders remains strongly bullish—72% of all open positions are long on the pair. However, share of pending long orders, decreased by 6% and at the moment 51% of all pending orders are posted by the market bulls.
© Dukascopy Bank SA