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- Ayako Sera, Sumitomo Mitsui Trust Bank (based on Reuters)
Pair's Outlook
Support at 100.70 holds, meaning there is still a good chance of a rally, first up to 103 and then up to 105 yen. The former resistance is created by the monthly pivot point, while the latter a lot denser supply zone is much less likely to let the price increase further. There the bulls will encounter the six-month down-trend and the 55-day SMA. Alternatively, if the scenario suggested by the indicators materialises and both 100.70 and 100 fall victim to the selling pressure, we will expect a bullish correction to start only circa 97 yen, when the rate meets the lower bound of the bearish channel.
Traders' Sentiment
A portion of bulls fell below the level seen five days ago, namely from 66 down to 61%. As for the orders, however, there is still no gap between the buy (50%) and sell (50%) ones.
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