USD/JPY recovers from 93.98

A recent fall of the currency pair, following a breach of an important bullish trend-line, did not extend yesterday, but was reversed by an interim support line at 93.98, calling into question whether bears will be able to take control of the price's direction in the longer term. Technical indicators are from neutral to positive and suggest that USD/JPY should re-test the rising trend-line at 95.13/05.

The current dominance of bullish traders over the bearish ones is extensive. While the share of long positions is 73%, shorts are in a distinct minority—27%. As for the orders, 69% of them are placed to acquire the U.S. Dollar against the Japanese Yen, which in turn is one of the least preferred currencies in the SWFX market.