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"In the short term it looks range bound with strong support just above the March lows at 118.30, while at the same time the rebounds keep getting shallower. We need to see a break above 120.70 to mitigate the downside risk of a move towards 116.50."
- CMC Markets (based on WBP Online)
Pair's Outlook
Yet again week US fundamentals weighed on the Greenback, forcing it to fall against the Yen. The USD/JPY attempted to erase Monday's gains, but the 55-day SMA at 119.85 prevented further decline. Moreover, the support cluster around 119.80 should turn the tide for the US Dollar today, as technical indicators are bolstering the positive outcome. However, we still expect the Buck to drop down at least to 119.60 support, represented by the 20-day SMA and the monthly PP.
Traders' Sentiment
Market sentiment remains unchanged, with 56% of all positions being long. The number of buy orders, on the other hand, decreased from 72 to 58%.
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