USD/JPY erodes down-trend resistance

USD/JPY is about to break out of the descending triangle it has been forming the past five months. Since the risks are considered to be to skewed to the upside, it is expected the pair will breach the nearest resistances, such as the 200-day SMA at 102, and set course towards this year's high at 105.44. However, at the moment neither the daily nor the weekly technical studies imply increased volatility, only longer-term indicators are bullish.

The sentiment towards USD/JPY stays strongly bullish, since as many as 73% of open positions are long. On the other hand, the share of buy orders 50 pips from the spot plummeted over the weekend, from 72% to only 43%.