USD/JPY suffers from setback

The long-term perspective remains bullish for the Dollar-Yen pair because of the reliable up-trend at 97.96/86 and the fact that monthly indicators are pointing upwards. The short run, as it turns out, is associated with considerable downside risks. The resistance at 100.88/40, created by the September high and the monthly R2, is not willing to let the price to advance further. In case the support at 99.36 fails to stop this pull-back, then the 200-day SMA is likely to spur buying.

An initial failure of the currency pair to extend the recent rally discouraged some of the Dollar-bulls, but they nevertheless stay in a distinct majority with 69% (73% yesterday). As for the orders, most (65%) of them are set to purchase the greenback against the Japanese Yen.