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"Now no decision has been made on that [Fed interest rate hike] and, what it will depend on, is the [Federal Open Market Committee's] assessment at the time. That assessment will be informed by all of the data that we collect between now and then."
- Janet Yellen, Fed Chair (based on WBP Online)
Pair's Outlook
The USD/JPY appreciated slightly more than anticipated and, as a result, stabilised at the highest in two months. Even though the Greenback is supported by the weekly R1 today, a sharper fall towards the 200-day SMA at 121.08 is possible if the fundamental data disappoints. At the same time, the 100-day SMA, along with the August 28 high (121.74) are providing resistance, a break of which should then trigger a rally towards the June high at 125.87 in a longer perspective.
Traders' Sentiment
Market sentiment remains bearish, but with 63% of traders holding short positions, compared to 71% yesterday. The share of buy commands remains unchanged, accounting for 56% of the market.
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