USD/JPY to stay above 200-day SMA

While yesterday it appeared as if the bulls have finally taken control of USD/JPY, the current price action proves this theory to be false. Still, the main supports stay intact, meaning that chances are skewed in favour of a recovery. The nearest such level is 101.69—monthly S1, but we should not rule out a possibility of the latest decline extending down to 101.22/19, a breach of which will invalidate the long-term bullish outlook.

The difference between the bulls and bears remains perfectly static. At the moment 71% of traders expect the greenback to outperform the Yen and 29% of them think otherwise. At the same time, the portion of buy orders surged, from 69% to 76%.