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- Citigroup Global Markets Japan (based on Market Watch)
Pair's Outlook
The US Dollar was unable to post significant gains against the Yen on Monday, as the 23.60% Fibo once again provided strong resistance and kept the pair below 114.00. The Buck, however, refuses to give up and is on the verge of crossing this area, with focus set on the weekly R1, located at 115.14. Even though technical indicators are in favour of the positive outcome today, downside risks are still present. The closest support, namely the weekly PP, is unlikely to limit the losses should those occur, in which case the USD/JPY pair could freefall towards a possible psychological support of 112.00 or even deeper down—the weekly S1 and 20-day SMA demand zone circa 111.40.
Traders' Sentiment
Once again 62% of traders are short the US Dollar, compared to 59% yesterday. The share of buy orders, however, remains at 51%.
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