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"The game changer for me is Yellen was extremely specific...mentioning the currency … saying the dollar cannot go higher. From a currency perspective, that's pretty important…It was a really explicit (message)."
- Jesper Bargmann, Nordea Markets (based on CNBC)
Pair's Outlook
The Greenback's losses against the Japanese Yen yesterday were limited, due to the ADP Employment Change data beating expectations. Nonetheless, the USD/JPY currency pair remains under pressure, with the weekly PP and the 20-day SMA, namely the closest resistance cluster, continuing to weigh on Buck. The bearish momentum is still expected to last until the exchange rate reaches the current descending channel's support line near the 110.50 level. The only obstacle on the given pair's path is support area circa 111.60, represented by the weekly S1 and the lower Bollinger band.
Traders' Sentiment
Today 70% of traders hold long positions, compared to 72% on Wednesday. Meanwhile, there are nearly three quarters (73%) of orders to sell the US Dollar (previously 55%).
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