USD/JPY closes downside gap

USD/JPY starts Tuesday on a strong footing. However, at the moment the currency pair is facing a formidable resistance at 101.77/75, consisting of the weekly and, most importantly, of the monthly pivot points. If this obstacle is overcome, the U.S. Dollar will have a good chance to carry on with the long-awaited recovery, which is implied by the monthly technical indicators.

An overwhelming majority of the SWFX market participants, specifically 74% of them, reckon that the Japanese Yen will in the end underperform relative to the greenback. At the same time, the buy orders placed 100 pips from the spot are losing their positions—their share dropped from 65% to 57%.