- DriveWealth LLC (based on Reuters)
The Fed's dovish statement weakened the US currency on Wednesday, allowing the Yen to push the pair beyond the triangle pattern's support line. More momentum is now expected to follow, but with the closest support located at 111.90, represented by the lower . Meanwhile, technical studies in the longer timeframes keep giving signals, bolstering the probability of the negative outcome. Furthermore, the immediate resistance in face of the weekly S1 just above the opening price is weighing on the USD/JPY pair, but the exchange rate could still remain above 112.00, as this major level kept the US Dollar afloat for six weeks now.
The Greenback is somewhat overbought, as 74% of traders still hold long positions. The portion of buy orders increased from 44 to 64%.