USD/JPY approaches 102.20

While the 20 and 55-day SMAs failed to underpin USD/JPY, the support at 102.20 successfully repelled the attack. Accordingly, the current bearish correction is likely to end near the weekly PP and 38.2%, thus giving way for the latest rally to resume. If this demand turns out to be insufficient to turn the pair around, the support at 101.77/69 (monthly S1 and long-term up-trend) has an even greater chance of restoring the bullish outlook.

The difference between the longs and shorts widened even more. Now 73% of traders wait for the U.S. Dollar to rise in value (71% yesterday). The change in the share of buy orders was much more substantial—from 55% to 67%.