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"Risk aversion could be next week's theme, potentially pushing dollar/yen back towards 111.00 yen."
- IG Securities (based on CNBC)
Pair's Outlook
The American Dollar weakened against the safe haven Yen on Thursday, retreating from its one-week high, amid the sudden return of risk aversion, caused by ECB Draghi's statement. However, risk sentiment improved today and is likely to push the Buck higher towards 114.00. On the other hand, the USD/JPY struggled to pierce the immediate resistance cluster, represented by the 20-day SMA and the weekly PP, this week, which might contribute to not only limiting the gains at 113.50, but even to an intraday decline. In this case, the weekly S1 at 112.39 is expected to prevent the pair from edging lower, while daily technical studies are unable to confirm either scenario.
Traders' Sentiment
Today 73% of traders retain a positive outlook towards the US currency, whereas the portion of buy orders surged from 66 to 79%.
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