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"As a trend, exports are recovering and will keep growing because the positive effect of the weak yen will strengthen in coming months. Hopefully that will offset risks, notably the possibility that China's economic recovery will remain weak."
- Dai-ichi Life Research Institute (based on The New York Times)
Pair's Outlook
It seems that yesterday the pair received a minor bearish impetus from the 20-day SMA as its rally above the 98 JPY was short lived and the pair has depreciated by almost 100 pips since then. In addition, short and medium term technicals add additional bearishness by pointing at further depreciation of the pair. At the moment it seems very likely that the pair will trail to 95 JPY in the medium term and till 94 JPY in the long term.
Traders' Sentiment
Share of bulls in the market decreased by 4% and at the moment they account for 70% of the market participants. However, we should pay attention to the fact that distribution of pending orders shifted by the same 4% in the favour of the bulls (65% in total).
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