USD/JPY stumbled over monthly PP

Despite USD/JPY closing above 101.61/54 yesterday, the resistance represented by the 55-day SMA and monthly PP appears to be unwilling to let the price to advance further. And while the near-term technical indicators do suggest a sell-off from the current levels, the bulls will most likely define direction of the pair in the longer-term perspective, possibly with the help of the support at 101, which has been constantly proving its worth since February.

While the SWFX market considers the Sterling to be overvalued against the Greenback, the Dollar itself is considered to be strongly undervalued against the Japanese Yen as well—this view is held by 74% of all traders.