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"Investors are looking positively at the weaker yen and likelihood of the LDP winning. But it's still unclear what effect U.S. monetary-easing tapering will have on the market, so strong buy orders are unlikely. The market will probably trade range-bound for a while."
- Toyo Securities Co. (based on Bloomberg)
Pair's Outlook
Pair started the week just slightly above the last weeks closing level. But due to the bullish impetus provided by the Fibo 23.6% (November, 2012, till May, 2013, move) current short term outlook seems to be rather positive. However, this short term rally might not be enough to convince some of the market participants to continue the rally. This is also indicated by the short term technicals. This Downside pressure might disappear if pair closes above the 55-day SMA, otherwise we might see a dip to 95 JPY.
Traders' Sentiment
Traders continue to be extremely bullish on the pair. Long positions account for 72% of all open positions on the pair. It is likely bulls will continue to dominate in the market as 58% of pending orders are set to buy the greenback against the yen.
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