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    USD/JPY to try and negate Wednesday's plunge

    © Dukascopy Bank SA
    "True, the yen is on the defensive. But it still has a long way to go before it reaches the 124 handle, where it was before, reflecting the still-cautious mood in the market."
    - Barclays (based on CNBC)

    Pair's Outlook
    The USD/JPY currency pair appreciated yesterday, but was unable to reach the 122.00 major level. With the Yen now weakening, the Greenback is likely to advance against it. A strong resistance cluster is located around 122.70., while from below the US Dollar is supported by the weekly S1. Despite expectations, technical studies keep suggesting the Buck is to weaken again today. We should not rule out this possibility, as a slump back under 121.00 could occur after Fed Chair's Speech today.

    Traders' Sentiment
    Market sentiment improved again, as exactly three thirds of traders are now holding long positions. The share of purchase orders, however, returned to its Wednesday's level of 51%.

    © Dukascopy Bank SA

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