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"I think 110 sounds terrible, for the Japanese economy. But it's a tough job for them [Japanese authorities], to keep levels in dollar/yen."
- BBH (based on CNBC)
Pair's Outlook
The USD/JPY partially recovered from its intraday low of 111.00 on Thursday, as Yellen's remarks dispersed some speculation concerning the Fed's monetary policy. However, the pair still closed with a 90-pip loss and is showing little sign of a possible rebound today. The rally could occur, pushing the pair towards the weekly S2 and the down-trend around 113.05, with a chance to even put the monthly S2 at 113.88 to the test. The more probable outcome remains a decline beyond the 111.78 level, namely the monthly S3.
Traders' Sentiment
Bulls are barely outnumbering the bears, as 52% of all open positions are long, unchanged since yesterday. The number of purchase orders, on the other hand, surged from 50 to 62%.
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