USD/JPY slipped beneath 109

As it turned out, USD/JPY did not have to touch the 2008 high in order to come under strong selling pressure. Right now the spot is 100 pips below the Tuesday's close, as the weekly PP and 2008 Sep high at 109 failed to provide sufficient support. At the moment the U.S. Dollar is facing the weekly S1 at 108.50, but this downward correction has the potential to extend to 108. Here the bears should be stopped by the monthly PP and two-month up-trend.

As a result of a large drop in price there are considerably less bears in the market than there were yesterday. However, the short positions still constitute a majority—60%. There are also more orders to sell the Buck—65% of the total amount.