USD/JPY stopped by 55 and 100-day SMAs

After effortlessly passing through the 200-day SMA USD/JPY encountered strong resistance in the face of the moving averages for 55 and 100 periods. Still, while the short-run is associated with the downside risks, in the longer-term the U.S. Dollar is reckoned to be bullish relative to the Japanese Yen, an outlook also reinforced by the monthly technical indicators.

Since the end of the previous week the portion of longs in the market increased by two percentage points up to 69%, meaning the sentiment has become even more bullish towards USD/JPY. At the same time the gap between the number of buy (62%) and sell (38%) orders has substantially decreased.