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- Sumitomo Mitsui Trust Bank (based on CNBC)
Pair's Outlook
USD/JPY's achievement last week, namely a settlement above the 38.2% Fibo and the 100-day SMA, which in turn was supposed to prompt notable increase in demand, did not facilitate further recovery of the currency pair. Instead of a surge up to the monthly PP at 103 the exchange rate continues to gravitate towards 102, as the technical indicators are sending conflicting signals.
Traders' Sentiment
While the sentiment remains strongly bullish (70%) with respect to USD/JPY, there are fewer supporters of the greenback than yesterday (74%). At the same time we should notice a substantial contraction of the buy orders placed 50 pips from the spot—the percentage dropped from 84% down to 67.5%.
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