USD/JPY to look for support at 103.50

For the time being this week is bearish for the U.S. Dollar, as it has already given up 50 pips. However, the outlook remains bullish, being that none of the main supports have been breached yet. The first concentration of demand is considered to be at 103.50, where the monthly R1 merges with the monthly PP. There is also an important level at 103 (July high), but as long as 102 is intact, the bias will be to the upside.

While the SWFX market sentiment remains neutral with respect to USD/JPY (54% of open positions are long), there has been a sharp decline in the relative amount of buy orders since the previous report—from 64% to 41%.