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USDJPY – The Dollar looks likely to remain in a tight trading range versus the Japanese Yen as extremely low FX volatility keeps it below key resistance.
Trade Implications – JPY Pairs: Retail FX traders have mostly sold into the recent USDJPY bounce into key resistance and yet remain net-long. The fact that professional trader sentiment is heavily one-sided also warns the pair may turn lower before a more meaningful bounce. Watch for a reaction near ¥103; a break above would clearly give us pause in our bearish outlook.
See next currency section:AUDUSD - Australian Dollar Looks Safe Above Key Support
Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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