USD/JPY weak until 99.98/93

Even though USD/JPY has already dropped nearly three figures last week, there is still room for U.S. Dollar's depreciation. The bearish wave is expected to be halted at 99.98/93, the lower boundary of the bullish channel the pair has been trading within since the start of this year. There the price should start to recover and in the end surpass the local high at 103.73.

Despite the growing portion of long positions in the market, bullish sentiments are overwhelming—72% of traders believe the U.S. Dollar is going to outperform the Japanese Yen, which in turn is sold across the board, 75% of positions held in its crosses are short. Meanwhile, buy orders take up 65% of all orders.