USD/JPY's recovery remains brittle

Although the U.S. Dollar is not as lively as expected after diving to 101.53, the currency is nevertheless grinding higher. Still, there is a number of resistances that must be overcome, such as the monthly PP and 200-day SMA. USD/JPY will then have a good opportunity to build on the success and reach the 2014 Q2 high at 104. For the time being the daily and monthly technical studies are supporting this course of events.

The SWFX traders remain net buyers of the U.S. Dollar against the Yen—73% of open positions are currently long. At the same time the percentage of buy orders set 50 pips from the spot price went up from 38 to 54%.