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"Our nation's economy is steadily recovering, and (movements in stocks) basically reflect positive movements in the real economy. […] The BOJ will maintain its monetary easing stance."
- Bank of Japan Governor (based on The Wall Street Journal)
Pair's Outlook
For the past 23 trading days pair has been trading in relatively narrow (300 pips) corridor around 100 JPY. At first, 100-day SMA was providing key support, but today we can see that 55-day SMA has come in to the play as well. Short term technicals has completely changed its aggregate outlook and at the moment is pointing at depreciation of the pair. However, it is a bit unclear if it is just a short term "glitch" due to the sudden change in numeric values of the indicators or indication of a substantial downside risk of the pair.
Traders' Sentiment
Situation on the pair remains around the same for quite some time now—no less than 70% of traders are long on the pair (74% today) and more than half of pending orders are set to go long on the pair (56% today).
© Dukascopy Bank SA