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Yellen to send USD/JPY back down?

Pair completely retraces FOMC drop but Yellen is up next

It's taken two weeks for USD/JPY to undo two days of damage from the FOMC decision. Earlier today the pair touched 113.80 to match the Fed-day high but it's sagged back to unchanged and Yellen will soon get another crack at it.

A quick fall followed by a slow retracement is a classic technical pattern. In general, the quick moves comes on much higher volume and with more conviction and tends to win out.

The rule of thumb heading into Japanese year end is for domestic firms to repatriate and that could hurt USD/JPY as well.

The big driver at the moment is Yellen. In my preview of her speech at 16:20 GMT, I argued for selling the dollar.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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