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- Royal Bank of Scotland Group Plc. (based on Bloomberg)
Pair's Outlook
So far support at 100.70, represented by the 2014 low and 50% retracement of the 2012-2015 up-move, is able to hold off the bearish pressure. Demand in this region is also reinforced by a psychological level of 100 yen, below which we may expect interventions from the BOJ. Accordingly, the rate is well-positioned to return to the monthly PP at 103.20. Nevertheless, prolonged recovery is unlikely because of the bearish monthly indicators and a strong trend-line at 105, where resistance is strengthened by the 55-day SMA.
Traders' Sentiment
SWFX sentiment further decreases the chance of solid gains from 100.70, being that the US Dollar is overbought: two thirds of positions are long. At the same time, there is no visible difference between the buy (52%) and sell orders (48%).
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