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"It's a dollar-driven market right now, rather than a yen-focused one. Yellen made it clear that the Fed will hike rates and under such conditions the question for participants is what currency to sell."
- State Street (based on CNBC)
Pair's Outlook
Although the USD/JPY did rise on Monday, gains were not as high as anticipated. The pair remained volatile for some time, but the Bollinger band at 121.77 still prevented it from surging too far. Ultimately, the US Dollar stabilised at 121.65, with expectations of another rally today. Even though technical studies retain mixed signals, the Greenback is likely to appreciate against the Yen and cross the Dec 2014 high, as the Bollinger band shifted above 122 psychological level. Nonetheless, the resistance area remains strong and might push the Buck back eventually.
Traders' Sentiment
The share of bulls dropped from 58 to 57%, whereas the number of buy orders now accounts for 71% of the market (previously 77%).
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