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"We expect Japanese capital outflows to pick up now that the Fed uncertainty is out of the way and that should weigh down on the yen. The market will be comfortable with the short-yen positions."
- Standard Chartered Bank (based on Reuters)
Pair's Outlook
Pair has recovered all of the losses caused by the major sell off few days ago and at the moment is hovering above the 20-day SMA. Despite the neutrality in the short and medium term technicals the outlook on the pair is mildly bullish. As 20-day SMA might not provide strong enough of an impetus, 55 and 100-day SMAs definitely could do so and send the pair testing 100 JPY. In case of a dip below 98 JPY, we could see the pair trail to 200-day SMNA around 96 JPY.
Traders' Sentiment
Despite of being on track to recovery it might be that bulls are taking a small step back. At the moment they account for 61% of market participants, that is 1% less than yesterday. However, 65% of pending orders, 7% more than yesterday, are set in their favour.
© Dukascopy Bank SA