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"Currencies will continue to closely watch equities, with the yen and euro boosted by unwinding of carry trades in such times of risk aversion."
- Barclays (based on CNBC)
Pair's Outlook
The US Dollar suffered more losses on Tuesday, amid weaker-than-expected fundamental data from both the US and China. The USD/JPY breached the immediate support cluster and ultimately fell under the weekly PP to 119.70. A rebound is likely to take place today, with the risk sentiment returning to the market. The nearest significant resistance is now the cluster around 121.00, namely the monthly PP and 200-day SMA; although the Greenback risks dropping deeper down if the fundamental data disappoints again today, causing a plunge under 119.00.
Traders' Sentiment
Bulls are now in the majority, taking up 58% of the market (previously 46%). The share of buy orders edged up from 33 to 38%.
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