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- Sumitomo Mitsui Asset Management (based on Reuters)
Pair's Outlook
For the second consecutive week the USD/JPY currency pair bounced back from the 102.50 level, unable to surge higher. Even though the Buck found support, represented by the weekly PP, at 101.76 yesterday, technical studies suggest this level is likely to be pierced today. The key support is located around 100.70 mark, namely the 50% Fibo and the weekly S1. In case this area gives in, the pair would then risk falling below the 100.00 mark and possibly even a retest of the falling wedge's lower boundary around 96.00. However, another rebound is eventually expected, which would trigger USD-buying and ultimately lead to an upside breakout from the wedge.
Traders' Sentiment
Market sentiment remains moderately bullish, as 59% of traders hold long positions. The number of buy orders inched down from 55 to 54%.
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