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"It's a very important input in the economic development and inflation development. When the euro tends to strengthen, it creates additional downward pressure on the economy and inflation, which in both cases isn't warranted. So we're not happy at the moment."
- European Central Bank Governing Council member Christian Noyer (based on Bloomberg)
Pair's Outlook
Pair took a step back after a substantial rally last week and at the moment seems to be consolidating around 143 JPY. We expect this to last for a few more days and then attempt to erode monthly R2. If it manages to do so we should start looking at the vicinity of 145 JPY. However, we don't see the pair advancing above this major level with ease.
Traders' Sentiment
Distribution of open positions remains almost equally distributed between the long and short traders. However, the 6% advantage bears have over the bulls at the moment is the largest difference in 10 trading days. Bullish side of pending orders decreased by 5-10% and is at 57-62% level depending on the range.
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