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"We continue to see opportunities with currency hedged positions in Japan. Encouraging monetary policy and a weaker yen provide a positive outlook for the Japanese economy."
- BlackRock Asset Management Canada Ltd. (based on The Globe and Mail)
Pair's Outlook
Pair seems to be somewhat supported by the 55 and 100-day SMAs, but capped by the weekly PP at the same time. At the moment it is trading exactly on the 20-day SMA. Pair could still dip to 98 or 97.5 JPY, but we expect for these level to hold and send back up. 100 JPY remains main interim target, solid close above it would put July high at 101.5 JPY in the outlook.
Traders' Sentiment
Market sentiment remains bullish, but noticeably less so in the last week. At the moment bulls constitute for 60% of the market participants, that is 2% less than yesterday. Majority of pending orders, 56% if to be exact are set in favour of the bulls as well. However, that is also 2% less than yesterday.
© Dukascopy Bank SA