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"The next BOJ governor must be dovish and a worshiper of Abe's economic policy. The BOJ's purchases will be a positive for maturities shorter than 10 years, while longer-dated debt will reflect the impact of a weaker yen as well as expectations for inflation and growth."
- Bank of America Merrill Lynch (based on Bloomberg)
Pair's Outlook
Pair depreciates for the second day, but remains in the boundaries of strong bullish channel which should be taken in to account seriously due to the readings of technical indicators and weakening bearish sentiment. It seems that pair will continue depreciating till 87.5 area where we can find weekly pivot (S1) and 20-day SMA and the uptrend support is not far either. After this we are likely to see a rally at least up to the recent high at 89.66.
Traders' Sentiment
Short traders lost a significant chunk of the market—their numbers in the market decreased by 6% as they account for 57% of market participants. Most likely such shift was caused by triggering of pending long orders as their share in the market decreased by same 6% to 72%.
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