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"The scale of drop in USD/JPY is limiting the upside now that financial market conditions have improved but a slow grind higher is possible if broader market conditions remain favourable."
- BTMU analytic team (based on WBP Online)
Pair's Outlook
The US Dollar failed to post significant gains against the Japanese Yen last Friday, as the USD/JPY pair inched only five pips higher. Although the given pair opened slightly higher today, resistance at the 114.00 psychological level appears to be holding the Buck at bay. However, the Greenback is now also supported by the weekly PP and the 20-day SMA around 113.40, where demand could be sufficient to trigger a buying spree for the 114.00 mark to be overcome. According to technical indicators, the bearish momentum is likely to prevail and push the US currency closer towards 113.00 major level.
Traders' Sentiment
Bullish market sentiment returned to its last Monday's level of 70%, compared to 75% on Friday. At the same time, the number of orders to acquire the American Dollar increased from 57 to 62%.
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