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"With the Fed reaffirming its caution in hiking rates, we expect a more gradual recovery of the USDJPY pair."
- UBS (based on Reuters)
Pair's Outlook
As was anticipated, the USD/JPY currency pair recovered from its intraday low on Friday, but was unable to post significant gains, due to the Bollinger band providing sufficient resistance. However, the Bollinger band acts as the immediate support today, providing the Greenback with a chance to begin its recover against the Japanese Yen. The nearest resistance to limit the gains rests at 112.11, namely the weekly PP. According to technical indicators, the US Dollar is to remain relatively flat for another day, thus, neither significant level is likely to be broken today.
Traders' Sentiment
Market sentiment remains strongly bullish, taking up 70% of the market, compared to 71% on Friday. The number of orders to sell the Buck is completely unchanged at 65%.
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