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"After last week's comments from Fed officials who suggested that rates could be raised in April, dollar bulls hoped that Yellen would confirm their less dovish posture."
- BK Asset Management (based on Business Recorder)
Pair's Outlook
Fed Yellen's statement yesterday caused the USD/JPY currency pair to fall back under the 113.00 level, therefore, preserving the descending channel pattern. As was anticipated, the dips were limited by the weekly PP, but with the Buck now under pressure, this pivot point is expected to be pierced. Consequently, the Buck could sustain sharper losses and close under 112.00, as the closest support is located only around 111.60, represented by the weekly S1 and the Bollinger band. The outlook is that the given pair should keep falling towards the channel's lower border around 110.50. A failure to break through the weekly PP is likely to cause a short-term recovery towards 113.24.
Traders' Sentiment
There are 72% of traders being long the Greenback, opposed to 71% on Tuesday. Meanwhile, the share of sell orders increased from 50 to 55%.
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