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- Wells Fargo Securities LLC (based on Bloomberg)
Pair's Outlook
The latest attempt of USD/JPY to recover was denied by 102.70, where the weekly pivot point merges with the 55-day SMA, and we are again below the monthly PP. Accordingly, the price is likely to keep falling until it encounters 100.80/80. There the US Dollar will meet a strong demand area, represented by the monthly S1, and even more importantly, the 50% retracement of the 2012-2015 up-move. For the time being we are waiting which of the key levels (psychological 100 yen or the eight-month down-trend at 103 yen) is going to give in first.
Traders' Sentiment
Yesterday's dip in the share of long positions was quickly reversed, and now 68% of traders are bulls, just like last Tuesday. Concerning the orders, there is no discernible difference between the amounts of buy (51%) and sell (49%) commands.
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