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- SMBC Nikko Securities (based on Reuters)
Pair's Outlook
Although the US Dollar appreciated against the Yen on Tuesday, the pair surprisingly closed below the immediate resistance, namely the weekly pivot point. However, the given supply area is unlikely to manage to keep the Buck from edging higher for the second day in a row, unless fundamental data puts more pressure on the American Dollar. In case bulls prevail, the 113.50 level is seen as the intraday ceiling, whereas a bearish development could extend as far as the 111.00 major level, where the weekly S1 coincides with the monthly R3. Meanwhile, technical indicators remain in favour of the positive outcome.
Traders' Sentiment
Today 59% of all open positions are short (previously 58%). At the same time, there are 51% of all pending orders to purchase the US currency.
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