USD/JPY surprises to the upside

USD/JPY overshot our expectations by a wide margin by effortlessly piercing through the resistance at 108. And while the weekly technical studies are mostly giving ‘buy' signals, the pair must confirm the new support to confirm its longer-term bullish intentions. Alternatively, if the monthly pivot point and 23.6% Fibo are unable to stop the sell-off, the price may slide back to the 55-day SMA, which is currently residing at 107.

As a result of a sudden jump in the price of the Dollar many of the market participants decided to enter short positions, the portion of which went up from 55 to 61%. But in the meantime, the percentage of the buy commands increased from 59 to 63%.