Initial reaction is dollar lower, but move reversed and now trading at highs (it is all over the place)The EURUSD has moved initially higher on the Yellen commnets, but is now back lower The same dollar reaction is mimicked in the USDJPY.
The EURUSD moved up from 1.1778 to 1.1795 initially. That move took the price briefly above its 100 bar MA on the 5 minute chart.
However, a comment that the Fed «should be wary of moving too graduallly» has sent the price back to the downside for the pair. We are trading at new session lows at 1.1763. The next target comes in at 1.17394 (swing low from August 23rd).
For the USDJPY…
The price fell below the 100 hour MA and the 200 day MA on the initial comments at the 112.08 level. However, hat fall was quickly retraced. The price traded to new highs and in the process moved above a topside trend line at 112.34. We are now back below that level.
Ups and downs on the comments, and now as I type, the dollar is moving back lower. The markets are confused and it may be scaring the buyers and the sellers now.