© Dukascopy Bank SA
"So far, most earnings for Japanese companies have been favorable and it's starting to breed confidence. As long as central banks in the world's major countries maintain their strong stance to not let the economy slip, the market won't break down and that's reassuring investors."
- SMBC Nikko Securities Inc. (based on Bloomberg)
Pair's Outlook
Pair inches up higher and is testing cluster of SMA's (55, 100,200-day SMA) at 98.40/53. We might see some bearishness here, but we should expect the pair to rise to October high at 99.22. In case of an unexpected failure the pair should find support at 97.05. Further dips would remain possible, but the pair should not fall below October low at 96.58.
Traders' Sentiment
Market sentiment remains strongly in favour of the long traders. Bulls hold 72% of all open positions, the same as yesterday. Bullish side of pending orders returned to 67% level after yesterdays decrease.
© Dukascopy Bank SA