- Citigroup Securities (based on Reuters)
Risk aversion caused the USD/JPY currency pair to experience a decline on Tuesday, with the pair edging lower towards the descending channel's support line. Although the channel lower border should trigger a rebound, risks of the pattern being broken are also high. Technical studies support the negative outlook with their signals, while a catalyst for the movement in either direction is required, which today's FOMC meeting should provide. A fall towards 109.00 major level is expected if bears take over the market, but if bulls prevail, the US Dollar might even climb back over the 111.00 mark.
Traders' sentiment remains , taking up 73% of the market, compared to 70% on Tuesday. Meanwhile, the share of sell orders returned to its Monday's level of 62% (previously 63%).