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- Goldman Sachs (based on CNBC)
Pair's Outlook
As anticipated, resistance near 130 yen was more than enough to initiate a sell-off. The upside is limited by the monthly S2 and multi-month down-trend, while the weekly S1 is immediate support. However, the losses should extend beyond the latter level, probably down to this year's minimum at 127 yen. Beneath this price lies a falling support line, which is likely to start a bullish correction in the region between 126 and 125 yen.
Traders' Sentiment
The gap between the bulls and bears has widened. Now 60% of open positions are long. In the meantime, the percentage of sell orders soared from 53 to 84%, as the market seems to seriously doubts sustainability of the rallies.
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