The resistance encountered at 111.80, namely the monthly PP, was too tough for the USD/JPY pair to bare, resulting in the breach of the recently-acquired up-trend. Being that the pair kept trading between the monthly S1 and the monthly PP, the exchange rate should now keep falling towards the 109.22 area. Technical indicators somewhat support this possibility. No significant developments are expected this week, meaning that with the given rate of decline the most likely weekly close could be 110.00 major level. Moreover, there are no market movers present on the calendar, with the closest potential one scheduled only for June 26. Meanwhile, traders’ sentiment also remains relatively neutral, as 55% of all open positions are long.
