"There's a nervousness among traders now that the Japanese officials have stepped up their verbal interventions...and so traders are speculating that the Japanese central bank will step in eventually if dollar/yen goes too low."
- Commerzbank (based on Business Recorder)
Pair's Outlook
[ANNOUNCE]Despite substantial upside volatility, the US Dollar was unable to stabilise above the resistance line of the falling wedge pattern.[/ANNOUNCE] The FOMC Meeting Minutes is the main USD/JPY driver today, which could cause a breakout to the upside. In this case, the next level to limit the gains will be the weekly R1 at 109.75, while the 110.00 mark also has a chance of being retaken. On the other hand, a dovish statement could prolong the pattern's lifespan and trigger a sell-off at least towards the monthly PP at 108.39, which not only kept the Buck elevated since last week, but is also reinforced by the weekly PP and the 20-day SMA. Meanwhile, technical indicators are unable to confirm either scenario.
Traders' Sentiment
Today three quarters of all open positions are long (previously 70%), whereas the portion of sell orders edged up from 51 to 61%.