USD/JPY consolidates near 108

At the moment USD/JPY is consolidating just above the support at 108, represented by the monthly pivot point and 23.6% retracement of the July-October up-move. Accordingly, if the pair manages to gain a solid foothold above this level, there is going to be a good chance of the US Dollar appreciating even further, namely to this year's highest point at 110. Conversely, if the bears overpower the bulls, the rate may fall down to the 55-day SMA at 107.20.

The market retain negative bias towards USD/JPY—right now as many as 60% of the traders are holding short positions. However, they might get closed in the nearest future—a majority (61%) of the nearby orders are to buy the Dollar.