USD/JPY to re-test 100-day SMA

The strong upward impulse seen yesterday confirmed that USD/JPY still deserves a bullish outlook. Now the pair is facing the 100-day SMA and monthly PP. Last week this supply area prevented further appreciation of the U.S. Dollar and therefore it poses a significant threat to the current rally. But if the currency preserves the direction nonetheless, 103.43/32 will be expected to become the next target.

An overwhelming majority (75%) of market participants continue to believe that the buck will appreciate relative to the Japanese Yen. Meanwhile, the buy orders are losing their positions (from 72% to 66%), meaning less support for the pair.