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"The U.S. dollar remains supported, and that will continue for the foreseeable future. That's being driven by other central banks needing to be much more aggressive."
- Westpac Banking Corp. (based on Bloomberg)
Pair's Outlook
USD/JPY managed to offset all the Friday's losses and gained a foothold above 118 once again. However, the resistance at 119 remains intact, and the currency pair must break it to confirm bullish intentions. The first target will then be the late December highs at 121, followed by the 2014 maximum just below 122. In the meantime, the support at 118 seems no longer reliable, the demand at 116 is a better candidate to be the medium-term line in the sand.
Traders' Sentiment
There are even more people confident in appreciation of the US Dollar relative to the Yen than yesterday, as 65% of open positions are now long. The share of buy orders increased by a considerably wider margin, from 57 to 70%.
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