© Dukascopy Bank SA
The yen gained further in Asia led by safe-haven buying as investors were preparing for a busy week of central bank policy reviews and studied polls for a possible UK exit from the European Union. The data from China also was highly studied. A recent move above the 200-period SMA (4H) is a clear indicator of the bullish trend, while aggregate technical indicators do not give a clear ‘buy' or ‘sell' signal. In line with the fact, more than 61% of respondents are having bearish view on the pair, the consensus forecast stands for 105.9, meaning traders do not believe bulls will be able to close above the 200-period SMA and will finish this week right at the weekly pivot. The expressed opinion can be accepted with a high level of confidence, as last week more than 66% of all votes were correct. The overall idea expressed by our Community members can be represented by one comment- "From a technical perspective the pair nears weekly and monthly support, fundamentally the two central banks are expected not to take any action this week. The Fed's impact on volatility may be subdued this time around as markets have already priced in a more modest path to normalization, while speculation over further easing in Japan suggests upside risk in the USD/JPY in the event discussions surrounding future intentions of further stimulus arise in the BOJ meeting". This statement belongs to Jignesh. While aggregate indicators are mixed, megajorko is suggesting the market is overbought and the pair will head to the south soon. The earlier-mentioned opinion is supported by another view expressed by PisakJanos.
© Dukascopy Bank SA