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"Japanese earnings aren't good enough to alleviate the fears from global concerns. There's still concern about how the U.S. tapering story will pan out, and about China's economy. It's quite surprising how volatile markets are being today though, given how quiet it's been recently."
- Shinkin Asset Management Co. (based on Bloomberg)
Pair's Outlook
Pair has been trading around 100 JPY for quite some time, but today, for the first time in 10 days , pair seems to be consolidating below the 99 JPY. Combined with the changed aggregate reading of short term technicals this indicates about the increased downside risk of the pair. At this point it could be uplifted if pair would close above 100 JPY. Otherwise, we should pay attention to the Fibo 38.2% at 97.5.
Traders' Sentiment
Despite of the significant increase in the bearishness in the market bulls remain in clear control. Bulls account for 73%, 2% more than yesterday, of market participants. Majority (55%; +3% since yesterday) of pending orders are in favour for the bulls as well.
© Dukascopy Bank SA