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"The decision to impose losses on depositors signals euro area policymakers' willingness to risk triggering wider financial market disruptions in pursuit of other policy goals. While raising the risk of deposit flight out of peripheral banking systems, the agreement reflects euro area policymakers' desire to avoid sovereign defaults in addition to Greece's."
- Moody's Investors Service (based on The Wall Street Journal)
Pair's Outlook
Pair started the week way lower than ended the last one, but is slowly picking up and at the moment is trading at the 20 and 55 day SMAs. Although daily technicals are silent, medium term technicals point at further appreciation of the pair. However, it is very likely it will take some time for the pair to get back at the previous levels as the will be very important resistance level at 125 JPY on the way.
Traders' Sentiment
Market sentiment hasn't changed much after the weekend. Outstanding positions are distributed 53% vs. 47% in the favour for the bears. Pending orders, however, with 60% of all pending orders being in favour for the bulls suggest we might see choppy sessions in the nearest future.
© Dukascopy Bank SA