USD/JPY slips to 55-day SMA

Being unable to prove its bullishness and advance beyond 94.47/24, the currency pair is being sold off. The price is now heading towards the 55-day SMA at 93.79/41, but may also fall beneath the weekly S2 at 92.81, down to 92.23/09, support area that was topical a little more than a month ago. Despite the weakness in the short run, longer time perspective is considered to be positive, a view also propped by weekly and monthly studies.

The Japanese Yen is still one of the least preferred currencies among the majors, bought in merely 25% of cases in its crosses. Accordingly, an overwhelming majority (73%) of market participants is expecting USD/JPY to recover. The ratio of buy to sell orders is 60 to 40%.