USD/JPY extends rally

Although we were inclined to believe that the supply at 101.64/54 is going to stop the pair, the U.S. Dollar carries on strengthening relative to the Yen. USD/JPY should now probe the monthly PP and 55-day SMA at 101.84/78, which are in turn guarding the resistance at 102.08/02 (down-trend and 100-day SMA). A close above the latter point will most likely imply a test of the 200-day SMA at 102.50.

There is a significant advantage of long positions over the short ones at the moment, being that the former constitute 75% of the market and the latter—merely 25% of it. For now performance of USD/JPY meets the expectations.