USD/JPY capped by 55-day SMA

Although previously the 55-day SMA did not seem to play an important role in determining direction of USD/JPY, for the past two days it has been preventing further advancement of the currency pair. Accordingly, there is an increased possibility of the exchange rate taking a step back to 102, where the 28.2% Fibonacci retracement level merges with the weekly pivot point.

Despite USD/JPY's hesitation to continue the rally, the market has become even more bullish with respect to the pair. The share of long positions went up from 71% to 74%. As for the orders placed, the difference between the buy (46%) and sell (54%) ones is presently not significant.