USD/JPY pares recent gains

Despite a fairly strong report on Friday the bulls did not manage to push USD/JPY through 104. The pair has already dipped through the support at 103.41/34 and it is currently testing the 100-day SMA. If the moving average gives in, the monthly PP at 102.72 will be exposed. However, this level is reinforced by the weekly S1 and 20-day SMA and most of the daily and monthly indicators are giving ‘buy' signals, meaning a rebound from there is still a viable scenario.

For the past three days the sentiment was significantly less bullish than usually (it was fluctuating around 60%), but the share of bullish traders returned to the normal levels and is now 74%. Meanwhile, the portion of buy orders soared from 51% to 63%.