- Nomura (based on Business Recorder)
Yellen rather hawkish speech provided support for the US Dollar on Monday, prompting the USD/JPY currency pair to undergo a bullish correction of 95 pips. The Buck is likely to retain its post-Yellen strength and continue appreciating today, with the closest resistance located beyond the 108.00 mark, represented by the weekly pivot point. At the same time, in case of any weakness the monthly S1 and the Bollinger band are to form provide sufficient support around 107.05 to limit the losses. Technical indicators, however, are still giving bullish signals, bolstering the possibility of the positive outcome today.
Sentiment keeps weakening, but remains bullish for now, with 72% of traders being long the Buck. Meanwhile, the number of sell orders increased dramatically, namely from 27 to 73%.