USD/JPY struggles to remain above 112.00

"JPY longs finally dropped last week from their highest levels since 2008. This coincided with a better tone in many stock markets and suggests that risk appetite has improved."
- Rabobank (based on WBP Online)

Pair's Outlook
The USD/JPY currency pair extended its recovery yesterday, reaching the 112.00 major level. The Greenback now faces an immediate resistance at 112.11 in face of the weekly PP, but this level might give in, as the Buck appears to be heading towards its descending channel's resistance line around 113.40. However, technical studies are now giving bearish signals in all timeframes, suggesting that supply, represented by the weekly PP, is sufficient to cause a decline towards the nearest support, namely the Bollinger band at 111.38, which in turn is reinforced by the channel's lower border.

Traders' Sentiment
Nearly three quarters (73%) of traders are now long the US Dollar, compared to 70% on Monday. Meanwhile, all pending orders are equally divided between the buy and the sell ones.