US dollar bulls disappointed
The US dollar bulls were looking for a lifeline from Yellen. There was a chance she could be hawkish and argue for rate hikes because of financial stability risks.
Instead, the speech was a total dud. She talked about regulation, liquidity and a few other things that aren't FX market drivers.
The initial reaction was to sell the US dollar. USD/JPY dropped to 109.30 from 109.60.
The euro move was a bit bigger as the pair hit stops above the highs from the past few weeks. The four-hour charts shows some of the levels that gave way. The zone around 1.1900 will be tough without any help from Draghi, who is due at 2 pm ET.
