© Dukascopy Bank SA
"The yen has strengthened somewhat, weighing on shares. Japanese shares have rallied almost nonstop this month, and it will take something more, such as further stimulus, to extend gains from here."
- Meiji Yasuda Asset Management Co. (based on Bloomberg)
Pair's Outlook
Short term technicals give indications that pair still has the propensity to trail lover. Support for this is given by the yesterday's fall as well. 55 and 100-day SMAs are supporting the pair for the time being, but it is a bit unclear if they would manage to do so in the near future. If the pair dips below these levels, it might find longer term support with 200-day SMA. In order to uplift almost all of this downside risk, the pair must consolidate above the 100 JPY.
Traders' Sentiment
As in quite a few other cases today, we can observe increased bullishness on the pair. Long traders at the moment account for 66% of market participants, 5% more than yesterday. At the same time bullish side of pending orders increased by 2% and is at 67% gauge.
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