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"The dollar showed its resilience yesterday by holding the bottom of its recent range. But even despite what Yellen said, there is still no guarantee that the Fed will hike rates this year. As such, the dollar is likely to lack clear direction and move within 118-122 yen for a while."
- Monex (based on CNBC)
Pair's Outlook
Despite rather strong volatility to the downside yesterday, the USD/JPY still managed to remain within the triangle pattern and edged closer to the 120.00 major level. The US Dollar is expected to regain the bullish momentum today and break out of the pattern accordingly, after having been pinned down to the 120.00 level for two weeks. Any further Greenback's attempts to appreciate should be limited around 121.00, where the 200-day SMA coincides with the monthly PP and weekly R1.
Traders' Sentiment
The share of bulls returned to its last Friday's level of 61%. At the same time, the portion of orders to acquire the US currency dropped five percentage points to 52%.
© Dukascopy Bank SA