USD/JPY undergoes correction

USD/JPY is getting further and further away from 109, but nonetheless retains bullish long-run outlook. The nearest support is at 108.40 represented by the weekly PP, though the current dip can easily extend down to the monthly R3 at 108. In case both these levels fail to underpin the pair, there is a rising two-month line at 106 that should be able to restore the upward momentum. Meanwhile, the weekly and monthly studies are mostly bullish.

A notable majority of the SWFX traders reckon the Buck to be overvalued relative to the Yen, namely 66% of them. In the meantime, 68% of orders placed 100 pips from the spot are to purchase the U.S. Dollar.