USD/JPY breaches 100 JPY

USD/JPY breaches 100 JPY

'Investors are taking on more risk amid a global stock rally as concern recedes over military intervention. That's pushing the yen downward, which is raising expectations for higher earnings at Japanese exporters.' - SMBC Nikko Securities Inc. (based on Bloomberg)

Pair's Outlook

After the prolonged struggle with the 100 JPY, pair managed to breach it. This uplifted significant portion of the downside pressure and put 101.4 as an interim target. If the pair manages to advance above it in a timely fashion, we could easily expect it to test 103 JPY in the short term as well. In case of a failure at the 2 month high, we could expect it to slip to 100 JPY. Failure here would put 99 JPY on the map.

Traders' Sentiment

Bears are keeping the pressure on the bulls, who have lost additional 4% of the market and at the moment account for 58% or market participants. Majority of pending orders, however, remains in favour of the bulls suggesting they are not willing to give up that easy.