© Dukascopy Bank SA
"As the yen continues to weaken, profit at Japanese exporters will improve. That should drive earnings upgrades, boosting the share market. The market will remain volatile as investors await Japan's economic reforms. The market is still hung up on the prospects of Federal Reserve's stimulus tapering."
- ABN Amro Private Bank (based on Bloomberg)
Pair's Outlook
After signalling significant weakness pair found support with the monthly PP. Taking in to the account that support levels are located relatively close to each other it is unlikely pair will depreciate further, at least in the short term as suggested by the technical indicators. Dips are possible but should not fall below 97 JPY.
Traders' Sentiment
Number of bulls in the market returned back to the preweekend levels—75% of markets are long on the pair. This increase seems to be coming from the triggering of pending orders as pending long orders decreased to 53%.
© Dukascopy Bank SA