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- Societe Generale (based on Reuters)
Pair's Outlook
In spite of a strong US GDP reading on Friday, the American Dollar still weakened against the Japanese Yen, putting the five-week up-trend to the test. Today the USD/JPY currency pair opened with a small bearish gap, but the bullish momentum is expected to prevail, pushing the exchange rate back above the trend-line. Technical indicators are also in favour of the positive outcome, as their signals changed from mixed to bullish over the weekend. However, the 105.00 level is expected to be the ceiling today, with the Bollinger band providing resistance slightly higher at 105.11.
Traders' Sentiment
Traders' sentiment is even more bearish than on Friday, being that 55% of all open positions are currently short (previously 52%). Meanwhile, the number of buy orders slid from 55 to 54%.
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