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– Barclays (based on Reuters)
Pair's Outlook
The Greenback experienced another leg down yesterday, having once again lost nearly 100 pips against the Japanese Yen. However, the exchange rate closed above the 112.60 psychological support level, which should technically now cause a U-turn. Technical indicators, on the other hand, are giving bearish signals, and the 20-day SMA recently crossed the 55-day one to the downside—also providing a sell signal. As a result, downside risks are relatively high today, in which case price could fall even below the 112.00 mark. With a lot of uncertainty present in the markets recently, we should not rule out the possibility of bulls taking over, but with the 115.00 handle remaining intact.
Traders' Sentiment
Today 53% of all open positions are long and 59% of all pending orders are to buy the Buck (previously 49% and 53%, respectively).
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