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"I think the BOJ knows the logic of a selloff at the time of a risk-off mood, no need to go out of its way to ease when the market is overshooting ."
- Bank of Tokyo-Mitsubishi UFJ (based on Market Watch)
Pair's Outlook
The US Dollar unexpectedly outperformed the Japanese Yen on Thursday, amid rumours of the BoJ applying more monetary stimulus. The USD/JPY was able to erase this week's losses, with the bullish trend prevailing earlier today as well. As a result, the Greenback could also negate previous week's losses if it managed to pierce the weekly R1 level just above 118.00. The pair has the potential to rise to 118.46, where the 20-day SMA rests; however technical studies suggest a sell-off is possible, with the immediate support cluster doubtfully limiting the dips.
Traders' Sentiment
Today 71% of traders are short the Buck, compared to 70% on Thursday. The share of purchase orders increased from 34 to 54%.
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