USD/JPY comes off 2014 highs

As expected, the resistance at 105.50, represented by the 2014 high, proved to be a formidable obstacle by sending USD/JPY back to the weekly R2. And the sell-off may extend even further. But at the same time there is a high chance the bearish momentum will come to naught before 104 is violated. There the weekly PP merges with the 2014 Q2 high. Another major demand area is at a round level of 103, where the July high is reinforced by the weekly S3.

The sentiment in the SWFX market towards USD/JPY remains neutral, as the difference between the bulls (47%) and bears (53%) is minimal. As for the orders, there are slightly more commands to buy the U.S. Dollar (56%) than to sell it (44%).