USD/JPY faltered at 78.71/76

Confrontation with a resistance level at 78.71/76 resulted in another pronounced leg down, which may extend to 78.13/77.93. The support is also reinforced by 77.52/34 and therefore should be able to withstand bearish pressure and restore positive bias towards the pair. However, it may take some time, since technical indicators give mixed signals at the moment.

USD/JPY is overbought to a considerable extent, as 70% of traders expect the Dollar to appreciate and only 30% of them wait for the Yen to increase in price, despite the latter being the least frequently acquired in SWFX marketplace. Allocation between buy and sell orders also supports bullish outlook, being 69% to 31%, respectively.