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- Commerzbank (based on Reuters)
Pair's Outlook
After strong rally yesterday, pair slowed down today and has dipped to as low as 105.7. However, Bollinger band seems to be providing enough support for the pair to keep it hovering at slightly above 106 JPY. Although technical indicators give neutral outlook it is fairly obvious pair should be in "overbought" state and we should see a bearish correction after which it will become clearer if this rally will continue.
Traders' Sentiment
Share of bears in the market hasn't changed since yesterday as they account for 54% of all market participants. Distribution of pending orders point at completely the opposite—60% of all pending orders on the pair are to go long.
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