USD/JPY bounced off 78.71

USD/JPY has effortlessly pierced through 78.43/42, but failed to penetrate 78.71 and the price is currently drifting lower. The pair is expected to make another attempt to erode the nearest resistance and get closer to a key level at 79.49/50, overcoming which would imply medium-term bullish behaviour, though additional resistances at 78.92/79.11 and 79.29 will have to be breached.

USD/JPY remains overbought, since 72% of the positions held are long, leaving only 28% of the market to traders, who deem the Japanese Yen bullish, thus there is a heightened probability of a dip. However, the pair may be supported by a large amount of buy orders (62%) and recover.