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"If equities fall, it appears that the yen is going to strengthen."
- Palo Alto (based on Business Recorder)
Pair's Outlook
Yesterday the Japanese Yen managed to outperform the US Dollar for the first time this week, as falling oil prices sparked buying of major Yen crosses. The Greenback, however, remains strong and is expected to edge higher again today, after the Japanese Markit Manufacturing PMI weakened the Japanese currency. Even though technical indicators keep giving bearish signals, the USD/JPY currency pair has been in an up-trend ever since the 18-month low was put to the test two weeks ago. The nearest area to limit the gains rests around 110.00 level, represented by the weekly R1 and the 20-day SMA, but the second target, namely the monthly S1 and the weekly R2, is also reachable.
Traders' Sentiment
Today 71% of traders hold long positions. The gap between buy and sell orders narrowed, 47% are now to acquire the Buck (previously 45%).
© Dukascopy Bank SA