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- Masashi Murata, BBH (based on Reuters)
Pair's Outlook
During the previous three days the USD/JPY currency pair remained almost completely muted, awaiting for the Fed president to speak today. According to technical studies and other data, Yellen is likely to be dovish, which would lead to another US Dollar sell-off. Moreover, the Buck then risks falling under the 100.00 yen level, with the nearest area to limit the losses being the cluster around 99.45, represented by the weekly S1 and the Bollinger band. A breach of this area would expose the 99.00 mark, as well as the second support area circa 98.70, which is the final obstacle before the Greenback could begin falling towards the descending channel's lower border around 95.50.
Traders' Sentiment
Bulls remain in the majority, taking up 70% of the market today. Meanwhile, 61% of all pending orders are to purchase the Buck.
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