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USD/JPY attempts to recover from Monday's plunge

© Dukascopy Bank SA
"Generally speaking, the yen's weakening is positive for exporters and companies operating overseas."
- Shinzo Abe, Prime Minister of Japan (based on CNBC)

Pair's Outlook
Yesterday the US Dollar suffered substantial losses unexpectedly. Weekly PP failed to stop the fall and, as a result, USD/JPY fell back under the 125 level. Moreover, downside volatility even stretched out to the weekly S1 at 124.30, but was unable to breach the second support. The weekly S1 has prevented the given pair from falling down again today, thus, a correction is likely to take place today, with the weekly PP now acting as an immediate resistance at 125.07. Meanwhile, technical indicators keep giving bullish signals. 

Traders' Sentiment
For the fifth time in a row, market sentiment remains bullish at 54%. The share of buy orders, however, edged 13 percentage points closer to the equilibrium now taking up 52% of the market.

© Dukascopy Bank SA


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