USD/JPY closes below 55-day SMA

Correction in USD/JPY drags on and has already resulted in the 55-day SMA being eroded. Currently the pair is probing 92.93/81, but it appears that bulls need considerably more time to fully regain control of the price and recommence pushing it higher. First such possibility could be realised at 92.23/10, although the downside risk remains considerable and a deeper dip is likely to occur before we see a robust recovery.

While traders' perception of the Pound is changing at the moment, there are no significant shifts observed in market's attitude towards the Japanese Yen, 72% of positions are bets that the Asia currency is going to depreciate. In the meantime, 61% of all orders on the pair are to buy the U.S. Dollar.