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"The BOJ shouldn't let concern about weakening the yen further stop it from expanding policy if needed."
- Etsuro Honda, adviser to PM Shinzo Abe (based on Bloomberg)
Pair's Outlook
USD/JPY extended its gains last Friday, but added only 17 pips. Due to better than expected US GDP data release the Greenback breached the weekly R1 level. However, the pair did not surge too high, settling not far from the R1 resistance at 119.57. Moreover, taking into account the technical indicators, which are mostly pointing north-ish, the US Dollar is likely to maintain its bullish momentum through Monday. Closest resistance is still the weekly R1, but this time at 120.06, as the pair opened this week at 119.70.
Traders' Sentiment
Percentage of longs decreased over the weekend, as bulls lost two percentage points and now account for 56% of all positions. At the same time, the number of buy orders edged up back to 61%.
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