USD/JPY's upward momentum nullified by 200-day SMA

The currency pair failed to topple a combination of the 100 and 200-day SMAs yesterday and returned back to the up-trend at 101.86. Unless this support manages to initiate a strong recovery in the nearest future, the outlook may be changed to a bearish one, as it would mean a breach of a major rising trend-line that has been in force for the past 17 months, it is therefore a key level. For now the monthly indicators are in favour of a rally.

There is still no change in the distribution between the long and short positions—74% and 26% respectively. Meanwhile, there was a notable increase in the percentage of buy orders placed 50 pips from the spot—from 48% up to 67%.