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"I'm not quite sure how the dollar would respond even if you told me now what's going to happen."
- Steven Barrow, Standard Bank Group Ltd. (based on Bloomberg)
Pair's Outlook
USD/JPY failed to extend the latest rally from 118.50, and is therefore expected to come back to this month's low. The main resistance remains a combination of the monthly pivot point and 200-day SMA around the level of 121 yen, and for the time being this enforces a bearish outlook on the currency pair, even though the technical indicators are pointing north in the monthly time-frame.
Traders' Sentiment
It is becoming less popular to be long the Greenback, especially when compared to the situation five days ago, when almost three fourths of all positions were long. At the moment 62% of traders are bulls. Meanwhile, the share of buy orders reached 64%.
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