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"We anticipate further yen weakness over the coming quarters as evidence mounts that Abe's policy is bearing fruit. The yen's going through a bit of a tussle. It's been pushed and pulled between its haven status on the back of the Washington debate over the U.S. debt ceiling and potential for further stimulus from the domestic Japanese government."
- Miller Tabak & Co. (based on Bloomberg)
Pair's Outlook
Pair remains supported by the 55 and 100-day SMAs. It is giving indications of future strength. Expectations of a significant rally would be very realistic if the pair would remain in the uptrend whose support goes through the 12th and 28 of August lows and would not dip below the 200-day SMA. To uplift most of this pressure, the pair would have to advance above the 20-day SMA.
Traders' Sentiment
Bulls have returned on being the dominant power in the market. For a few days now, both, the bullish side of outstanding positions and pending orders are above 70% gauge, 72% and 73% respectively.
© Dukascopy Bank SA