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- BK Asset Management (based on Reuters)
Pair's Outlook
Some hawkish comments from the Fed caused the Greenback to add more than 120 pips against the Yen yesterday, nearly managing to retake the 103.00 mark. Even though technical indicators are no longer giving bearish signals, a possibility of bears taking over still exists. Nonetheless, a tough support cluster around the 102.00 major level is more than capable of handling any bearish development, while gains could potentially extend towards 103.75, where the monthly R1 coincides with the weekly R3 and the 100-day SMA. Moreover, the 104.00 level also represents significant psychological resistance, which remained intact for more than two months now.
Traders' Sentiment
Although not as strong as yesterday, but market sentiment remains bullish at 60%. The share of buy orders, however, slid from 77 to 64%.
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