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- SVB Asset Management (based on Reuters)
Pair's Outlook
The Greenback managed to appreciate against the Japanese Yen yesterday, with trade closing in front of the 113.00 major level—right in the middle of the immediate resistance cluster. With the anticipation of the US ADP Employment Change data today, the Buck is also expected to post more gains. However, the bullish development is likely to be limited by approximately 60 pips, as a surge higher would imply a breach of the eight-month descending channel's resistance line. Consequently, the USD/JPY currency pair could make a U-turn when touching this down-trend, retreating back to 102.00. Meanwhile, technical indicators are unable to confirm either scenario.
Traders' Sentiment
Bullish sentiment barely changed, as 66% of all open positions are long (down from 67%). The share of buy orders increased from 63 to 67%.
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