USD/JPY faces downside risks

Being that USD/JPY has not yet closed beneath the rising support line, we should not rule out a possibility of an up-move, which will pierce through the resistance at 103.83/74. Then the currency pair will have to surpass only 104.12/07 in order to reach 104.92/87. However, if the trend-line is violated, this may potentially lead to losses down to 100.86/54.

The gap between the amounts of bulls and bears has slightly widened since the previous report, as the share of the former is now 59%, while the latter are taking up 41% of the market. At the same time there is strong support for the U.S. Dollar—83% of orders are set to purchase it against the Japanese Yen.