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"A BOJ easing is highly unlikely. The BOJ does not have a wide range of options for a further easing."
- Deutsche Bank (based on Reuters)
Pair's Outlook
Even though the weak US fundamentals caused the USD/JPY to drop close to the monthly S1 at 118.53, the pair managed to recover most of the losses by day's end. Ultimately, the US Dollar remained unchanged against the Yen, losing only six pips, but remaining muted on Monday. The Greenback opened slightly above the monthly PP, which is providing strong support with the help of the weekly PP and the Bollinger band. Nevertheless, technical studies retain their bearish signs, implying that the Buck is to decline again.
Traders' Sentiment
Market sentiment keeps improving, as nearly three quarters (74%) of all positions are long (previously 71%), while the number of buy commands also edged higher, from 56 to 60%.
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