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"We are still expecting dollar/yen to move back above 110 in May, and comments on Friday or before (the G7 meet) could trigger that move."
- BMO Capital Markets (based on Business Recorder)
Pair's Outlook
Even though the US Dollar edged higher against the Yen on Monday and even erased Friday's losses, the resistance trend-line of the falling wedge was not put to the test. Nevertheless, price opened closer to the down-trend today, which is now providing immediate resistance. Technically, we should see another small decline, with the USD/JPY pair anchored to the 109.00 mark, before the Greenback breaks out of the pattern to the upside. A lot will depend on tomorrow's FOMC Meeting Minutes, as a dovish statement would only prolong the pattern. Today's possible decline is to be limited by the 20-day SMA, the weekly and the monthly PPs around 108.60.
Traders' Sentiment
There are 70% of traders holding long positions (previously 71%). Meanwhile, the number of purchase orders inched up from 46 to 49%.
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