USD/JPY to respect 98.46/33

Yesterday USD/JPY slipped down to the 20-day SMA at 98.15, but did not close below the support at 98.46/33, the one that is formed by the three major moving averages, namely for 55, 100 and 200 days. If this area holds, which is the most likely scenario, the currency pair is expected to target 99.36/10; if it does not weather the current selling pressure, then we are to see a re-test of the up-trend support at 97.42.

Even though USD/JPY has been failing lately to commence a robust recovery, a substantial part of SWFX market participants are bullish on the pair—74% of them are long on the U.S. Dollar. Speaking of orders, 69% are to purchase the greenback and 31% are to purchase the Yen.