USD/JPY's bullish outlook relies on 101

Abundance of various resistances between 101.50 and 102.50 is not letting USD/JPY to regain its bullish momentum. For now the support at 101 copes with the downward pressure, but a breach of this level could potentially entail a strong sell-off, since there is low concentration of demand beneath. Nonetheless, the monthly technical indicators seem to be mostly optimistic—four out of eight are presently giving ‘buy' signals.

In most pairs the Greenback is considered to be undervalued, and USD/JPY is not an exception—74% of traders are currently holding long positions. As for the orders, a majority of them are to purchase the Buck against the Yen.