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"The drop by dollar/yen was shocking. It was a reminder of how scary the market can become when positions are tilted suddenly in one direction."
- State Street in Tokyo (based on Reuters)
Pair's Outlook
USD/JPY has rebounded from the steep drop yesterday, when the weekly S1 at 119.05 was breached. Nonetheless, even though this level was broken yesterday it still remains a support level as of today. Moreover, the technical studies have become more bullish compared to day earlier, as the daily technical indicators are giving 'buy' signals, after being neutral yesterday.
Traders' Sentiment
The sentiment of the SWFX market participants remains neutral with respect to USD/JPY, as of today 51% of the market participants are long. Concerning the orders placed 100 pips from the spot, there are now significantly more commands to buy, namely 77%.
© Dukascopy Bank SA