USD/JPY on verge of up-move

Despite the strength of the nearest support at 101.00/100.65, the currency pair failed to gain enough bullish momentum after testing it in order to overcome the 100-day SMA. Nevertheless, the outlook is bullish, being that USD/JPY is closing in on the apex of the falling wedge pattern, which in turn portends a strong recovery. Before this happens, however, there is a possibility the U.S. Dollar will fall down to 100.19/99.95, 200-day SMA and 61.8% Fibo.

The current portion of bulls in the market, 72%, is well above the 10-day average value of 58%, as more and more traders consider the decline in USD/JPY as overextended. In the meantime, the gap between the buy (57%) and sell (43%) orders has sharply narrowed.