USD/JPY probes 101.20

USD/JPY decisively breached the up-trend support line and then moved rapidly towards 101.20 last week. For there to be a chance of a rally, this level should withstand the selling pressure, as it did earlier this year on several occasions. But while the monthly technical studies are pointing upwards, the daily and weekly indicators imply that the rate is going to fall further south before there is a recovery.

Concentration of the bulls slightly diminished compared to the previous report (73%), but they are still taking up a substantial part of the market—70%. Meanwhile, the gap between the buy (69%) and sell (31%) orders widened.