USD/JPY eyes 102.20

If the recently broken 200-day SMA proves to be a new reliable support, the currency pair may soon launch an attack on a combination of the 55 and 100-day SMAs near 102.20. Should this resistance give in to the buying pressure, USD/JPY could attempt to revisit April's high at 104.12, above which lies this year's peak at 105.44. However, the daily and weekly technical indicators do not support this scenario for now, unlike the monthly studies.

There are relatively less long positions open in the SWFX market on USD/JPY than yesterday, but in general the traders appear to be strongly convinced in bullishness of the greenback—70% of them expect it to appreciate against the Yen.