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- Tariq Zahir, Tyche Capital Advisors (based on Reuters)
Pair's Outlook
After closing the gap and making a short downward correction yesterday, USD/JPY found support in the face of the 100-day SMA and the 38.2% Fibonacci retracement level of the November-December rally. Accordingly, the currency pair is now set to advance further from 102.04/101.96, with the next important target at 103.04, represented by the monthly pivot point.
Traders' Sentiment
Although at first there has been a notable increase in long on the U.S. Dollar positions lately, their portion declined back to 71.5%, but the overall sentiment in nevertheless strongly bullish towards USD/JPY. As for the orders, the portion of the buy ones is on the decline, their share fell from 61% down to 56%.
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