USD/JPY slips below 118

USD/JPY settled beneath the 23.6% Fibo and 55-day SMA yesterday, suggesting the US Dollar is likely to weaken more before the bulls regain control of the market. The immediate support is at 116.45/20, represented by the weekly S2 and monthly S1, followed by the 38.2% retracement of the Oct-Nov up-move. The latter is expected to prevent further depreciation of the greenback and force the pair to commence a recovery.

At the moment the share of longs stands at 59%, 2 percentage points lower than yesterday. As for the orders, the buy ones lost the advantage over the sell ones, as the share of the former plummeted from 74 to 53%.