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- Societe Generale (based on Reuters)
Pair's Outlook
A demand area between 102.23 and 102.05, mainly formed by the 100 and 200-day SMAs, proved to be insufficiently strong to turn USD/JPY around. As a result, the monthly PP and rising support line at 101.86 had to come into play. Accordingly, further loss of value by the U.S. Dollar is deemed to be unlikely. Instead, the buck is now expected to receive a bullish impetus and attempt to penetrate the resistance at 102.99/81.
Traders' Sentiment
An overwhelming majority of the SWFX market participants are bullish towards USD/JPY, as they are currently holding long positions, namely 74% of them. This is just a fraction above the 10-day average of 72%.
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