USD/JPY makes a pause

USD/JPY is presently taking a break to gather strength before conquering 108 and thereby opening a path towards the 2008 high at 110.50. In case of a correction the currency pair should be underpinned by the two-month up-trend at 106, where it is reinforced by the monthly R2, weekly S1 and 20-day SMA. If the demand here is not enough to prevent development of a decline, the Buck may fall down to 103 before resuming a recovery.

The distribution between the longs and short is currently skewed in favour of the latter that constitute 68% of the market (72% yesterday). As for the orders, 62% of the commands are set to purchase the Greenback against the Yen.