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"The yen tends to attract buying when tensions in the market increase."
- Sumitomo Mitsui Banking Corporation (based on The Economic Times)
Pair's Outlook
Pair remains depressed by the 20-day SMA and as short and medium term technicals continue to give bearish signals it is unlikely that the pair will consolidate above it anytime soon. All in all, it seems that the pair should trail slowly towards the 200-day SMA or trade sideways until the 200-day SMA comes closer. It might give bullish impetus and ignite a rally indicated by the long term technicals.
Traders' Sentiment
Recent bearish trend had a minor influence on the market sentiment which remained bullish around 70% gauge (69% today). Majority, 62% today (-3% since yesterday), of pending orders are sent to go long as well.
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