USD/JPY violated 200-day SMA

The 200-day SMA, one of the supports seen capable of revitalising the bullish momentum, was breached yesterday. This exposed another important level, namely the 50% Fibo at 101.19, which kept USD/JPY buoyant in February and March. Should it also fail to rekindle demand for the U.S. Dollar, the currency's long-term prospects will significantly deteriorate. Then we will look at the 61.8% Fibo as the next potential target.

The bullish sentiment towards USD/JPY is exceptionally resilient, being that even though the U.S. Dollar's performance recently has not been encouraging, an overwhelming majority of the SWFX market participants are long the buck.