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"The yen's strength is on concerns that the BoJ is not going to be doing anything."
- Riverside Risk Advisors (based on Business Recorder)
Pair's Outlook
Dovish Fed statement caused the USD/JPY currency pair to drop more than 50 pips lower, therefore, completely breaking out of the descending channel to the downside. The Buck is likely to prolong its decline, after BoJ Kuroda's comments earlier today triggered another Yen buying spree, also bolstered by the return of risk aversion. Even though the Bollinger band is the closest support, the cluster around 110.70 is much stronger. However, bears might push the Greenback beyond this support area, with the pair establishing a fresh 18-month low.
Traders' Sentiment
Bullish traders' sentiment remains unchanged at 73%. At the same time, the number of orders to acquire the US Dollar added 24 percentage points. The orders now take up 62% of the market.
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