USD/JPY steps back

USD/JPY failed to gain a solid foothold above the monthly R1 and retreated behind 114.70. Still, the overall bias is bullish, being that the majority of the technical studies points upwards, and any dips above 110 are viewed as correctional. The immediate support is at 114.22, but the bears are likely to keep selling at least until the rate reaches the next weekly pivot point at 112.87. But once the pair is above 115, the next target will be the monthly R2 at 117.

Though the sentiment is not as bearish as five days ago, when 70% of positions were short, the bears are nonetheless in a majority with 56% of the market. As for the orders, there is presently no significant difference between the buy (55%) and sell (45%) ones.