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– Doug Borthwick, Chapdelaine FX (based on Market Watch)
Pair's Outlook
A new spark of risk-aversion prevented the USD/JPY pair from posting more gains yesterday, causing the to fall towards 116.00. Despite the decline, the pair remained within its consolidation range, but due to a breach of that range last week, risks are now skewed to the downside. The Buck's inability to recover today could ultimately cause a drop towards the 114.00 mark, close to where the monthly S1 is located. However, first of all the pair is required to pierce the Bollinger band and the weekly S1 support area. This demand cluster still has the ability to trigger some USD-buying, which is to preserve the consolidation trend, as technical indicators suggest.
Traders' Sentiment
Today 52% of traders have a positive outlook towards the Greenback (previously 51%), while the share of buy orders slid from 54 to 53%.
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