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"Fundamentally, dollar-yen should stay anchored around the 118 level for now."
- Gaitame.com Research Institute Ltd. (based on Bloomberg)
Pair's Outlook
Demand at 119 turned out to be insufficient to prevent further depreciation of the US Dollar, and the currency is now headed toward 118. A sell-off beyond this level is unlikely, being that it is reinforced by the weekly S1, monthly PP and 23.6% Fibo. Still, should the bears break this support, USD/JPY will be expected to descend to 116.00/115.50 (weekly S3, monthly S1, 100-day SMA and 38.2% Fibo).
Traders' Sentiment
The distribution between the long and short positions is perfectly unchanged, 58 and 42%, respectively. At the same time, there are relatively less orders to buy the Buck, though they are nevertheless in a majority with 58% of the market.
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