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"The dollar may show a technical rebound against the yen from excessive response last week, but selling on recovery will likely predominate."
- Deutsche Bank (based on Market Watch)
Pair's Outlook
The US currency succeeded in appreciating against the Yen on Friday, with gains limited by the resistance trend-line at 113.20. Earlier today the Buck strengthened even further, as the risk-on sentiment returned to the markets. The USD/JPY currency pair now faces a rather strong resistance, represented by the monthly S2 and the weekly PP, a breach of which is required for the pair to completely exit the previous two-week down-trend. The bearish trend could still prevail, pushing the Greenback towards the nearest support circa 112.00, as technical studies retain negative signals.
Traders' Sentiment
Bears are now outnumbering the bulls by 4% points, whereas the share of purchase orders declined from 62 to 59%.
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