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"This [ECB's decision to hold the policy steady] raises further questions about the policy outlook for the Federal Reserve and Bank of Japan, both of which have meetings next week."
- Westpac Banking Corp. (based on Reuters)
Pair's Outlook
The US Dollar exceeded expectations and rallied towards the resistance line at 120.63 on Thursday. Even though technical indicators are not giving any particular sense of direction today, the USD/JPY is still likely to undergo a correction. The eight-week consolidation trend remains intact and, thus, the Greenback should bounce back, making its way back to 120.00. Moreover, a strong resistance cluster is located just above the spot price, represented by the Bollinger band, 55 and 200-day SMAs, as well as the resistance line, for piercing of which the pair lacks momentum.
Traders' Sentiment
There are now 70% of long positions, compared to 70% yesterday. The share of purchase orders, however, increased from 50 to 67%.
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