- Kathy Lien, BK Asset Management (based on CNBC)
The USD/JPY currency pair slumped for the fourth consecutive day yesterday, retaining its post-Fed weakness. The 112.00 psychological level failed to hold the losses, but the weekly S2 at 111.28 succeeded. This support could keep the US Dollar afloat today, but technical indicators retain mixed signals, suggesting that either outcome is possible. Technically, we should see a rebound, as a drop below 111.00 might cause the BoJ to intervene. The just above the opening price is the only obstacle on the pair's path towards retaking the 112.00 level.
Although not as strong as yesterday, but market sentiment remains at 71% (previously 74%). At the same time, the portion of purchase orders dropped dramatically, namely from 64 to 35%.