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"In terms of dollar/yen, it has been led back and forth by equities - particularly the impact of Chinese shares on Japanese stocks."
- FPG Securities (based on Reuters)
Pair's Outlook
The Greenback refused to stay under the 119.00 major level yesterday, adding 28 pips against the Japanese Yen on Monday. Nevertheless, the immediate resistance in face of the weekly PP was not reached, while the pair is still expected to post losses today. Chinese exports fell for the second consecutive month, increasing demand for safe-haven currencies, such as the Yen. As a result, due to lack of other significant fundamental events, the USD/JPY is likely to retreat and possibly even reach the previous week's low at 118.59. Technical studies also support the bearish outcome.
Traders' Sentiment
Both net positions and net orders improved. Now 74% of traders hold long positions, whereas buy orders take up 53% of the market.
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