© Dukascopy Bank SA
"With the election now behind us, stability is expected in the Japanese political scene, facilitating Prime Minister Abe's efforts to push through structural reform, tax reform and deregulation. While we believe today's result should be positive for the Nikkei index and USD/JPY, we don't expect significant and immediate market impact."
- JPMorgan Chase (based on Reuters)
Pair's Outlook
Pair remains choppy around the 100 JPY level. Technical indicators point at the short term strength of the pair, however, it seems to be more of an indication that the pair is unlikely to consolidate below the 100 JPY, but does not come as an indication of the pair's medium to long term strength. Actually, the Stochastic indicator suggests that we could see a significant sell off of the pair in the medium term. However, it should not fall below the 98 JPY.
Traders' Sentiment
Market participants became even more bullish on the pair. At the moment 75% (+1% during the weekend) of market participants are long on the pair. However, share of pending bullish orders increased by 7% and is at 61% gauge after the weekend.
© Dukascopy Bank SA