USD/JPY may exit bullish channel

Similarly to what was happening early April, USD/JPY dipped below the rising support line, thus endangering its upward tendency. However, there are a few supports that should help restore bullish momentum the currency pair seems to have lost. The nearest level is at 99.98/63, while a weekly S2 is at 98.77. In case bears push the price even lower, it could use 97.32/96.98 as a springboard as well.

A majority (73%) of market participants continue to endure a down-trend in USD/JPY, being that they have opened long positions. Willingness of traders to sell the Japanese Yen is not limited to this pair alone, 74% of positions involving the currency are short. On the other hand, there has been a sizeable decline in the share of buy orders, from 75% to 66%.