USD/JPY tests monthly R1

The currency pair is currently facing the support at 103.50, which is supposed to prevent further depreciation of the U.S. Dollar and then help it surpass the resistance at 104. But in case this scenario is not realised, USD/JPY will most likely look for support at the July high—103. Still, a key demand area is around the level of 102, where various SMAs merge with the monthly PP and, even more importantly, with the 18-month up-trend.

There have been no large changes neither in the distribution between the longs (55%) and shorts (45%) nor in the distribution between the buy (41%) and sell (59%) commands since the yesterday's report.