© Dukascopy Bank SA
"A sense of caution is looming in the market, especially because investors are worried about a slowdown in the Chinese economy. And when they see a risk in Asia, they tend to buy the yen, and the Japanese market is hit by that."
- BNP Paribas (based on Reuters)
Pair's Outlook
Despite the clearly bullish market sentiment, pairs development in the first days of this week signals about significant weakness. It is likely that some bearishness will persist despite the fact that short term technicals changed aggregate signal from negative to neutral. Pair should find support and stabilize at 97 JPY. Short term rallies should be capped by 98.7/99.2 area.
Traders' Sentiment
It seems that bulls are charging for an attack after open long positions decreased by 3% during the weekend, till 72% in total. Share of pending long orders increased by 10% and is at 65% gauge today.
© Dukascopy Bank SA