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"Due to developments in Syria and with a U.S. military strike no longer imminent, risk appetite has found some support and this has hurt the yen."
- Nordea (based on Reuters)
Pair's Outlook
Short term RSI and Stochastic and clustering of the 20, 55 and 100-day SMAs suggest that we should see some choppy sessions (in the 99 to 101 JPY zone) in the nearest future. 100.7 is an interim target for the pair if it wants to advance higher. Dip below 98 JPY could ignite a sell off to 96 JPY. In the long term we expect that the pair will gain pace and start moving towards 103 JPY where median of the expectations of major market participants is located.
Traders' Sentiment
Market participants are becoming noticeably more bearish on the pair. Bears took additional 2% of the market under their control, now they account for 56% of market participants. Distribution of pending orders remains in marginal favour, 58% against 42%, of the bulls.
© Dukascopy Bank SA