USD/JPY puts pressure on up-trend

USD/JPY continues to grind lower, although it has already hit the major rising support line at 102.00/101.82. If this demand area fails to revitalise the bullish activity, the U.S. Dollar may have trouble appreciating in the long run, despite the monthly studies pointing north. Still, the 200-day SMA at 101.59/43 and 50% Fibonacci retracement level of the November-December up-move at 101.19 remain intact and should prove to be significant.

Right now a substantial majority (70%) of the market participants bet on the greenback, at the same time expecting the Yen to underperform. Meanwhile, the advantage of buy commands 50 pips from the spot notably diminished, from 72 to 44 percentage points.