USD/JPY to test 102.22/04

USD/JPY is currently retreating after breaking out of the triangle to the upside. The first significant support is at 102.22/04 (a cluster of several simple moving averages), but the bearish correction may take the U.S. Dollar lower, down to the major rising trend-line at 101.86, before the bulls once again take control of the market and set the course towards one of the main resistance levels at 104 (April high and monthly R2).

The SWFX marketplace participants remain distinctively net long on USD/JPY—70% of traders plan to profit from the buck's appreciation relative to the Japanese Yen, while 30% expect a completely different scenario.