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"The Fed minutes reinforced that tapering could start in September and so we'll see further weakness that we saw early in the week in some of the Asian plays. But the yen's (weakness) is providing some support."
- Credit Suisse (based on Reuters)
Pair's Outlook
After being depressed under it, the pair received a minor bullish impetus from the 20-day SMA. It should push the pair towards the 98.5 JPY, but it seems highly unlikely that the pair could excel above it, at least not very far. Similar view is given by the medium term technicals and it seems very likely that we will have to wait for the recovery, highlighted by the long term technicals, for some time more.
Traders' Sentiment
It seems that 2-3 day long bullish periods after a week long depreciation are enough to keep the pairs market sentiment at a strongly bullish, 70%, gauge. Clear majority, 67%, if to be exact of pending orders are in favour of the bulls as well.
© Dukascopy Bank SA