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"It's is true that the market has turned into a risk-on mood, but I don't expect sustainable gains in [Tokyo] stocks. That's making the dollar top heavy [against the yen] from where it is now."
- Bank of Tokyo-Mitsubishi UFJ (based on Market Watch)
Pair's Outlook
The Greenback overperformed at the end of the previous week, as the target resistance in face of the 20-day SMA was overcome. The USD/JPY now finds itself locked between the 20-day SMA from below and the monthly S1 from above. Meanwhile, technical indicators shifted from bearish to mixed, implying that the Buck could be on the path of recovering its bullish momentum and, thus, might end the day above the psychological level of 119.00. On the other hand, trade could remain flat, as supply and demand circa the opening price are equally strong.
Traders' Sentiment
Bearish traders' sentiment remains unchanged at 71%, whereas the portion of orders to acquire the US Dollar increased from 54 to 64%.
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