USD/JPY again trades above long-term SMA

USD/JPY managed to close above the 200-day SMA, and this is a good bullish signal. However, there are still a number of tough resistances lying overhead that are capable of negating the current upward momentum. The nearest cluster is at 102.38/19, it is mainly formed by the 55 and 100-day SMAs. The next supply area is the rising trend-line at 102.78/55, which is strengthened by the monthly PP and weekly R2 levels.

The SWFX market participants are getting more and more convinced that the U.S. Dollar is going to outperform the Japanese Yen—as much as 75% of the traders (71% on Friday) are currently holding long positions on USD/JPY.