USD/JPY capped at 121

We will hold a bearish view with respect to USD/JPY as long as the monthly pivot point and 200-day SMA that stand next to 121 remain intact. In the coming weeks the pair is inclined to fall down to 118.50, where in turn we expect strong demand, considering how this level proved itself in April and August. Beyond this point the US Dollar will likely aim for this year's lowest level at 115.85, which was observed in January.

Although the bulls remain in a majority, they are quickly losing their positions. The share of longs slid from 62 to 58%. At the same time, unlike yesterday, there are now relatively less buy orders (44%) than sell ones (56%)