‘The dollar/yen was weak last week, so investors bought back the dollar on Yellen’s comments.’ – BBH (based on Reuters)
Pair’s Outlook
The American Dollar managed to erase all intraday losses against the Japanese Yen yesterday and even climb over the 114.00 mark, thus, breaking its seven-week bearish trend. The US Dollar now has the potential to post more gains and reach the 115.00 major level, but a surge beyond this level could be difficult to achieve, as the 55-day SMA, the weekly R2 and the upper Bollinger band form a strong resistance area around 115.15. Technical indicators in the daily timeframe also suggest the Buck could post losses today. Setbacks are now expected until the USD/JPY pair reaches the 21-month bearish trend-line near 118.00.
Traders’ Sentiment
Bulls are barely outnumbering the bears, taking up 51% of the market (previously 55%). The share of buy orders increased from 56 to 58%.
