After 2 days of questioning by congressional members, Janet Yellen offered no material clues on when the Fed will raise rates. Those waiting for this event to provide clues for USD-direction were left disappointed. Let’s take a look at the the USDX and USD/JPY charts.
The US Dollar index is at an interesting juncture after a rally in May. It has completed an ABC correction, or in Gartley terms it has completed an ABCD retracement pattern to 61.8% retracement level. The RSI is overbought in the 4H chart. It looks ready for a bearish attempt. The USD/JPY was left stuck in the middle of a falling channel. There is nothing that suggests June’s falling trend won’t continue, UNLESS price pushes above 102. Otherwise, the downside risk remains toward the low on the month around 101.10, then the 100.75 low on the year.