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– RBS (based on FXStreet)
Pair's Outlook
Another rally on Monday caused the US Dollar to break out from the descending channel pattern, suggesting that more gains are likely to follow. Technical indicators are also in favour of the Buck outperforming the Japanese Yen again, but the weekly R1 now has the potential to limit the possible gains, as it located just under the 118.00 major level, bolstering that psychological resistance. A successful surge beyond 118.00 is to set the USD/JPY pair on a bullish path toward 118.70, where the ten-month high coincides with the weekly R2. However, the relatively recent sharp two-month rally brings doubts to another strong and stable bullish trend.
Traders' Sentiment
Bulls and bears are no longer in equilibrium, as 51% of all open positions are now short. The share of buy orders remains at 51%.
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