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- Capital Economics (based on WBP Online)
Pair's Outlook
Even though the US Dollar outperformed the Japanese Yen on Friday, the exchange rate remained between the 112.00 and 114.00, namely within its consolidation range. Consequently, the Greenback is now expected to weaken, as trade opened less than ten pips from the upper border of the consolidation trend. However, a possibility of the USD/JPY currency pair edging higher towards 114.50, where the Bollinger band rests, exists, as technical studies are giving bullish signals. The base case scenario, on the other hand, is a decline to 113.28—the 20-day SMA, which is also reinforced by the weekly PP.
Traders' Sentiment
Nearly three quarters (74%) of all open positions are long today. At the same time, the number of purchase orders dropped significantly, namely from 79 to 63%.
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