© Dukascopy Bank SA
"The Japanese market appears to be building a base for the next leg of the rally. We may see further earnings upgrades as the benefits of Japan's monetary stimulus begins to show."
- AMP Capital Investors Ltd. (based on Bloomberg)
Pair's Outlook
99 JPY area with the 55-day SMA seemed a tough target last week. Weeks start above this level gives rather positive signs about the pairs future. However, 100 JPY area should be followed cautiously as only a close above it would negate most of the downside risk pair is facing at the moment since May to June sell off was the longest bearish correction in quite some time and might have significant psychological effects on the traders.
Traders' Sentiment
Pressure on the bulls is increasing. Although they still account for 74% of market participants, 58% of pending orders, 4% more than on Friday, are set to sell the greenback against the yen.
© Dukascopy Bank SA