© Dukascopy Bank SA
"Markets are entering a period of uncertainty. There's a policy vacuum in Japan and the government isn't going to come up with new policies until parliament resumes sessions in September. While the possible tapering of U.S. stimulus has been more or less priced in, people tend to be a little bit cautious until it happens."
- RBC Investment (Asia) Ltd. (based on Bloomberg)
Pair's Outlook
Pair lost additional 80 pips yesterday as weekly S2/monthly S1 did not provide enough support to stop the pair. At the moment it is trading at the Fibo 23.6% (end of May till middle of June move) and it is unclear if it will manage to stop the pairs depreciation. More safer bet for being a strong support would be the 200-day SMA at 95.6. If the pair falls below it we can easily assume that 4 month low at 93.7 will be next target.
Traders' Sentiment
Bulls have lost some part of the market—at the moment they account for 70% of market participants (4% less than yesterday). However, share of the pending long orders increased by 6% and is at 68% gauge today maintaining the situation in the market mainly unchanged.
© Dukascopy Bank SA