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"The risk grows that the Fed's discussion will go from raising rates to growing its balance sheet. They are not going to commit to a rate hike."
- BMO Capital Markets (based on Reuters)
Pair's Outlook
As expected, USD/JPY confirmed the support at 118. However, the bullish momentum is still fragile, being that the resistance at 119, mainly represented by the monthly pivot point, remains intact. If this supply level is not breached in the nearest future, the price may well return back to 116, where the monthly S1 together with the 38.2% Fibo will once again try to save the positive outlook for the US Dollar.
Traders' Sentiment
At the moment there are considerably more people in the SWFX market believing the buck is going to outperform the Yen, as 64% of open positions are long. The buy orders are in a majority as well, taking up 61% of the total number of pending commands.
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