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"Whether the dollar can breach the 122.04 yen threshold depends on upcoming U.S. data. While a June rate hike is no longer a likelihood, upbeat indicators that would back up Friday's CPI numbers will fan hopes that the Fed will provide hints at the June meeting on when it might hike rates."
- IG Securities (based on CNBC)
Pair's Outlook
The USD/JPY maintains strong uptrend, as the pair gained 50 more pips last Friday. During the trading session, the US Dollar did edge down against the Yen, breaching the immediate support level, but the exchange rate still closed above the Bollinger band at 121.54. Although technical studies retain mixed signals, today we expect the Greenback to rise again. The Bollinger band along with the Dec 2014 high provide solid resistance around 121.80, which should limit any substantial gains.
Traders' Sentiment
Bullish market sentiment returned to its Thursday's level of 58%. Meanwhile, the number of purchase orders increased, from 69 to 77%.
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