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"There are still two-way flows, with demand for buying the dollar on dips. Some may see the beginnings of a Lehman crisis-like situation. I don't think sentiment is that bad, but the next few days could determine how it pans out."
- Bart Wakabayashi, State Street (based on CNBC)
Pair's Outlook
The Greenback plummeted against the Japanese Yen yesterday, with volatility to the downside exceeding 550 pips. Ultimately, the USD/JPY pair stabilised below 119.00, at the lowest in three months. The Buck is poised to recover and retake the 120.00 major level, despite technical indicators showing mixed signs. The Bollinger band and the weekly S1 around 120.25 form the second resistance area, while the monthly S2 supports the given pair from below. However, we should not rule out the possibility of another slump, due to broad Dollar weakness and a stronger Yen.
Traders' Sentiment
Bullish traders' sentiment remains unchanged at 73%, but the share of purchase orders dropped 23 percentage points, down to 44%.
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