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"Right now we are more inclined to treat this as intra-day noise. As much as we do think geopolitics should be a bigger euro negative and bigger negative on Europe as exposures to Russia and Ukraine are much bigger, we don't think the market is focusing on that. We think the market is focusing on the lack of escalation in the tensions."
- Brown Brothers Harriman (based on Reuters)
Pair's Outlook
As expected, the pair is consolidating around 141 JPY. We are expecting this biasless trading to continue further on, highly likely till the end of the week. Only a major move, like a peak above monthly R1 or dip below the 55-day SMA could ignite a major rally or sell off. In case any of these happens, we could see the pair climbing till March high around 144 JPY or being sold off till February and March lows around 139 JPY.
Traders' Sentiment
Bulls continuing to regain their strength as open positions are equally distributed between the long and short traders today. That's a 1% increase for the bulls. However, long side of pending orders contracted by at least by 10% and is at 45-60% range today.
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