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"From the BOJ, nothing is expected. People are still unloading their dollar-long position ahead of the Fed."
- Global-info Co (based on Reuters)
Pair's Outlook
The USD/JPY experienced serious volatility on Friday, with trade closing in at the target support at 120.98, namely the monthly S1. The demand for safe-haven Yen was higher on Friday, created by the grim situation on the oil market. Volatility is likely to remain high before the FOMC Minutes, which could even lead the Buck to a two-month low. Right now the monthly S1 at 120.98 is preventing the US Dollar from reaching the Nov low, while a strong cluster of resistances around 121.60 is to keep the pair from advancing today.
Traders' Sentiment
Bulls appear to be gaining numbers, as 41% of all positions are now long, compared to 34% on Friday. The number of orders to sell the US currency, on the other hand, increased from 59 to 69%.
© Dukascopy Bank SA