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"The yen is likely to remain weak as flows from the 'three pension funds' will keep up the pressure once buying from GPIF begins petering out."
- Mitsubishi UFJ Securities (based on Reuters)
Pair's Outlook
On Tuesday, the US Dollar appreciated against the Japanese Yen, although not as much as anticipated. USD/JPY added only five pips and was nowhere near any resistance during the trading day. However, a decline is likely to take place today, due to an expectation of a reduction in the US Durable Goods Orders, while the technical studies retain their mixed signals. Closest support lies among a cluster of important levels around 119.00, which is highly unlikely to be breached.
Traders' Sentiment
Liquidity consumers' confidence improved, as 63% of traders are now long the Dollar (previously 59%). Meanwhile, the percentage of buy orders remains unchanged at 62%.
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