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Forex pairs in this Article » USD/JPY (Athens) – The USD/JPY is trading higher on Wednesday removing far away from its yesterday’s two month low level, due to news wires mentioning that super dovish Yellen will be nominated today as the next top bank Chair by President Obama.

USD/JPY advances as the greenback gets a high relief on Yellen’s nomination

The USD/JPY managed not only to overcome the yesterday two month low levels at the area as of 96.55, but also gained enough uptrend momentum to sustain its daily high gains (hovering nearly 97.40). Elaborating on, traders should not find out of the blue the fact that a super dovish nomination on the top chair of the top bank all over the globe it’s not dollar negative; investors should see behind the curtains and realize that Yellen is maybe the most reactive Fed member, thus that would be supportive enough for the dollar especially taken for granted we are amidst a period of US default jitters. Yellen nomination fuelled risk-on sentiment and removed much of the uncertainty of markets. Our personal belief is that traders mostly engaged with the specific cross, would by far pay much attention to the today’s 10 year bond auction in US.

Technical Outlook on the USD/JPY

Karen Jones, Head Technical Analyst at Commerzbank mentions that USD/JPY is bouncing higher following its test of its initial target of the 200 day ma at 96.78. We are alert to the increased possibility of a break lower. The short term resistance line offers initial resistance at 97.92 ahead of the 100.62 September high then 101.54/60 July high and the Fibonacci retracement.”
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