- ANZ (based on CNBC)
At the moment, USD/JPY appears to be on its way back to the major support trend-line the pair has recently (Jan 4) breached. The price exited the (Nov 29-Jan 20) to the upside, meaning we are likely to see the latest rally developing until it hits the level of 120.50 yen. There supply is implied by a number of studies, including the mentioned broken trend-line and 55- and 100-day SMAs, which is sufficient to initiate a strong and prolonged sell-off.
Yesterday's FOMC statement did not have any effect on the sentiment in the SWFX market whatsoever. Just as 24 hours ago, 72% of open positions are short. Although the portion of buy orders increased, but insignificantly—from 58 to 61%.