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- Mitul Kotecha, head of FX strategy, Asia-Pacific for Barclays (based on CNBC)
Pair's Outlook
USD/JPY closed yet another day in red, as the pair is getting farther and farther away from the resistance at 109. However, the studies on all relevant time-frames are giving ‘buy' signals, suggesting the sell-off is about to end. The nearest potential turning point is the weekly PP at 108.40. But the decline is more likely to reach the monthly R3 at 108. Should the selling persist even then, there is also a strong up-trend at 107.
Traders' Sentiment
Although the U.S. Dollar has somewhat depreciated since the last report, there has been observed no change in the portion of short positions open in the market—66%. As for the buy orders, their share fell from 68 to 64%.
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