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"Sentiment is turning against the U.S. dollar and this is consistent with markets expecting more quantitative easing"
- Credit Agricole (based on CNBC)
Pair's Outlook
Neither bulls nor bears currently appear to be capable of moving the currency couple, resulting in absence of any activity of the pair since August 23. Still, a decline to 78.04/77.98, likelihood of which has increased according to the signals of most of the technical studies, might trigger a bullish motion, which in turn may evolve into a prolonged rally—above a downtrend line at 79.34/38 en route to 81.62.
Traders' Sentiment
Three out of four market participants remain long on USD/JPY, expecting the greenback to appreciate against the Asian currency, while merely 25% of traders anticipate a different performance of the USD. Moreover, the share of buy orders has increased up to 65%, while sell orders constitute only 35% of the total amount.
© Dukascopy Bank SA