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"There's a nervousness among traders now that the Japanese officials have stepped up their verbal interventions...and so traders are speculating that the Japanese central bank will step in eventually if dollar/yen goes too low."
- Commerzbank (based on Business Recorder)
Pair's Outlook
Despite substantial upside volatility, the US Dollar was unable to stabilise above the resistance line of the falling wedge pattern. The FOMC Meeting Minutes is the main USD/JPY driver today, which could cause a breakout to the upside. In this case, the next level to limit the gains will be the weekly R1 at 109.75, while the 110.00 mark also has a chance of being retaken. On the other hand, a dovish statement could prolong the pattern's lifespan and trigger a sell-off at least towards the monthly PP at 108.39, which not only kept the Buck elevated since last week, but is also reinforced by the weekly PP and the 20-day SMA. Meanwhile, technical indicators are unable to confirm either scenario.
Traders' Sentiment
Today three quarters of all open positions are long (previously 70%), whereas the portion of sell orders edged up from 51 to 61%.
© Dukascopy Bank SA