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"Japanese individual investors don't look like they will be bullish on the dollar and bearish on the yen any time soon, as far as recent market moves go."
- Gaitame.com Research Institute (based on Reuters)
Pair's Outlook
The USD/JPY settled in front of the immediate support cluster yesterday, managing to partially recover from the daily low of 114.20. Demand for safe-haven assets such as the Yen remains high, thus, we could expect a breach of the immediate support, with the second target to limit the losses being the monthly S2 at 113.88. Nevertheless, a hawkish tone of the Fed's governor today could provide sufficient impetus for the bulls to push the Greenback back over the 116.00 mark.
Traders' Sentiment
Almost three quarters (74%) of traders are now short the Buck, compared to 73% on Tuesday. Meanwhile, the portion of orders to acquire the US Dollar declined significantly, namely from 60 to 47%.
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