USD/JPY lingers at 200-day SMA

USD/JPY remains unable to decouple from the 200-day SMA, which is not caving in to the selling pressure but at the same time is failing to ignite a rally. However, given that a substantial portion of the technical indicators are pointing North, the risks are still skewed to the upside. Accordingly, the 2014 Q2 high at 104.12 is viewed as the medium-term target, especially since there are no significant resistances overhead, except for the monthly R1 at 103.54.

There are relatively less longs than 24 hours ago, but they are nonetheless in a distinct majority—70% of the whole market, meaning as many as seven traders out of ten believe the Greenback is going to outperform the Yen in the future.