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"While the BOJ remains largely sanguine on the outlook for the domestic economy, risk appetite driven developments are expected to hold sway over the USD-JPY and JPY-crosses in the near term."
- OCBC Bank (based on FX Street)
Pair's Outlook
On Monday, the USD/JPY almost reached the 123.00 psychological level, but due to lack of the bullish momentum was pulled back. As a result, the US Dollar stabilised at 122.66, right on top of the weekly pivot point. Today the Greenback is likely to bounce back from the weekly PP, despite attempts to edge higher in the early hours. The 55-day SMA keeps providing support, now around 122.45, but if the fundamentals disappoint the Buck might drop to 122.14, namely the Bollinger band.
Traders' Sentiment
Although not as strong as yesterday, but market sentiment remains bullish at 70% (previously 73%). The share of buy orders returned to last Monday's level of 67%.
© Dukascopy Bank SA