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"News that Summers had withdrawn from consideration for the Fed post has surprised the market as he had been widely tipped to take over from Bernanke. Given that he was also perceived to be less QE-friendly than Yellen, the other main contender, the U.S. dollar has fallen."
- Westpac Banking Corp. (based on Bloomberg)
Pair's Outlook
Pair started the week noticeably lower than the last weeks closing price. It seemed that 55 and 100-day SMA's could push the pair higher, 20-day SMA proved enough to keep it capped. The pair itself is not giving any clear directional impulses, which can also be observed in short and medium term technicals. 98 JPY should provide short term support for the pair. Dip below it would indicate increased downside risk and would put August low (94 JPY) on the map. 100 JPY is a good interim target for the bulls.
Traders' Sentiment
Bulls strengthened their presence in the market noticeably as yen remains bought only in 40% of the cases across the board. At the moment long traders account for 62% of market participants, that is 8% more than on Friday. Additional support is coming from the pending orders as 58% of them are set to go long as well.
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