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"The market is getting nervous about tapering. I expect that to happen in September and the dollar to start rising then. But it is likely to go through some adjustment before that as there's concerns that tapering could spark risk-off trading."
- Nomura Trust and Banking (based on Reuters)
Pair's Outlook
Yesterday the pair was testing 55-day SMA at 98.5, but did not manage to breach it. This caused a massive sell off until the pair found support with the weekly PP at 97 JPY. However, as indicated by the short and medium term technicals the pair is facing significant downside risk and the bearishness is likely to persist.
Traders' Sentiment
Despite the recent mildly bearish trend bulls remain confidently in control of the market as at the moment account for 74% of all market participants. Distribution of pending orders is in their favour as well (58%).
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