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"But overall, what the G7 said did not change the basic thinking in the Tokyo market, and no one expects the yen to fall back to previous ranges in the 80's [against the dollar] because of it."
- Bank of Tokyo-Mitsubishi UFJ (based on Reuters)
Pair's Outlook
After an outstanding beginning of the week and a new high, the pair gradually retreats lower. The price has slipped through the supporting level at 93.74, consisting of the monthly and weekly R1. Seems that the majority of traders reduce their positions due to technical indicators, implying a significant overboughtness. The RSI has a value of 86 in a weekly graph, adding to signs that the rally may be overextended.
Traders' Sentiment
The share of bullish positions contracted during the night, as 59% of positions are long and 41% are short. Pending orders situation remains heavily bullish, as 74% of orders are for a long position and 26% for a short.
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