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"Technically, the 1 hour chart shows that the 100 SMA extended below the 200 SMA, both well below the current price and showing no directional strength, whilst the technical indicators head lower in negative territory, maintaining the risk towards the downside."
- Valeria Bednarik, FX Street (based on FX Street)
Pair's Outlook
The USD/JPY retreated yesterday, but upon reaching the 20-day SMA around 122.89 was slightly pushed back up. As a result, the Greenback stabilised at 123.33 with signs of a possible climb today. The immediate resistance is likely to be breached, as we should see the pair advance towards 124.40, namely the weekly R2 and the upper Bollinger band. Technical indicators, however, are giving mixed signals today, unable to confirm any scenario.
Traders' Sentiment
Bullish sentiment returned to its Monday's level of 74%, whereas the portion of orders to acquire the Buck increased from 53 to 61%.
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