USD/JPY gravitates towards 38.2% Fibo

USD/JPY failed to surpass one of the recent lows and pared its recent gains by going all the way back to the 38.2% retracement of the Oct-Dec rally. Even if the pair dives beneath this support, the long-term outlook will nonetheless remain bullish, mainly because the key demand area is around 100, consisting of the 200-day SMA, monthly S2, 61.8% level and the 11-month up-trend line.

Bulls are gradually returning to the market, making the difference between the numbers of long (59%) and short (41%) positions more and more significant. At the same time the portion of the buy orders is surging. While yesterday only 44% were to purchase the U.S. Dollar, today—already 60%.