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"The yen is being sold as stock gains boost risk appetite. The net buying of foreign bonds by Japanese investors certainly doesn't help the yen either."
- Gaitame.com Research Institute Ltd. (based on Bloomberg)
Pair's Outlook
Pair dipped 200 pips in the end of the last week then found support with Fibo 38.2% (end of May to Mid of June move) and then monthly PP and hovered above it for 4 days. Today it received a bullish impetus from it and is testing 98.6/99.3 JPY area. However, due to prolonged bearishness and uncertainty and short term technicals it is highly unlikely pair will consolidate above this level in the short term. Sideways trading seems much more likely.
Traders' Sentiment
Share of bulls in the market decreased by 4%, however, they continue to hold overwhelming majority (70%) of open positions. It is likely that most of this change is coming from triggering of pending bearish orders which decreased by 11% since yesterday and is at 43% gauge today.
© Dukascopy Bank SA