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"The Japanese approach is different. They're not manipulating their exchange rate, they're not directly trying to set their exchange rate at a given level. It's in our interest to see Japan strengthen. Japan is trying to expand its overall economy and therefore there is a benefit as well as a cost. That benefit is a stronger Japanese economy and a stronger Asian market."
- Chairman of the Federal Reserve (based on Bloomberg)
Pair's Outlook
Pair has been struggling with the 100 JPY for the past three days. After a bullish impetus from the 55-day SMA the pair advanced by 75 pips today and peaked above it once more. However, as short and medium term technicals show more and more individual neutral readings there are serious doubts if the pair will manage to resume its rally confidently.
Traders' Sentiment
Although number of bulls in the market crumbled by 5% they continue to hold significant majority (70%) of all open positions on the pair. Pending orders are now almost perfectly distributed between the long and short traders.
© Dukascopy Bank SA