USD/JPY hamstrung by 109

The resistance at 109 proved to be a notable level last week, as it managed to stop a strong bullish momentum of USD/JPY. If the correction develops, the U.S. Dollar may fall down to the monthly R3 at 108. If there is not enough support to revive the rally, the dip could stretch down to 106.50, a two-month up-trend, and the bias will still be positive. In the meantime, most of the weekly and monthly technical indicators are pointing North.

The SWFX traders' sentiment remains distinctly bearish with respect to USD/JPY, being that the bears take up as much as 69% of the whole market. Concerning the orders, the buy ones are in a majority with a 66% share.