USD/JPY may lose upward momentum

Although many of the indicators are currently giving ‘buy' signals and the currency pair has been consistently respecting the bullish support line since Nov 7, now USD/JPY seems to be willing to violate it and thereby invalidate the positive near-term outlook. If the support at 102.08 gives in, the rate will be expected to extend the decline further, through 101.55/28 and down to 100.86/61.

The gap between the long and short positions did not continue to narrow further—right now 56% of them are bullish and the remaining 44% are to benefit from depreciation of the U.S. Dollar. However, on the whole in the SWFX market the level of Yen's popularity (57%) has just exceeded the level of greenback's popularity (56%).