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"If you believe U.S. rates will go up, the dollar is the choice. But if you do not have confidence in the global economy, the yen will be your destination."
- FPB Securities (based on CNBC)
Pair's Outlook
Despite expectations, a correction took place on Thursday, forcing the USD/JPY to drop below the 124.00 major level again. Nevertheless, the weekly PP keeps providing support, refusing to let the pair drop lower. As a result, the Greenback should experience a boost to regain that area today, but is unlikely to exceed the weekly high of 124.48. At the same time, technical studies retain their bullish signals, bolstering the possibility of a rally today.
Traders' Sentiment
Bulls regained some numbers, as 66% of all positions are long today, compared to 62% yesterday. The portion of purchase orders returned to its Wednesday's level of 63%, up from 60%.
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