© Dukascopy Bank SA
"We continue to think the outlook for the Japanese yen is more balanced than the extremely bearish consensus forecasts. With little evidence that BOJ easing has so far generated any yen selling pressure from within Japan, however, our near-term forecasts continue to be dominated by the steady erosion of yen shorts."
- RBC (based on Bloomberg)
Pair's Outlook
Despite the clear indications about the short and long term strength pair fails to pick up the pace. 100 JPY seems to be having most impact on this. Interim support is with the 20, 55 and 100-day SMAs at 98.63 (lower limit). Dip below it could provoke o slide to 97 JPY. Most of the downside pressure would be uplifted after a solid close above the 100.7 JPY.
Traders' Sentiment
Bearishness is continuing to weigh on the market participants. Bulls account only for 54% of market participants, that is a 2% decrease since yesterday and 4% decrease in the last few days. Majority of pending orders, however, remains noticeably in favour of the bulls (61% against 39%).
© Dukascopy Bank SA