USD/JPY: A disconnect with true value, short accumulation

With the topside proving to be a tough nut to crack, an observation that is predicated in the 3 times that bulls have failed to break above a major weekly resistance area at 114.00-115.00, this market appears poised to trade much lower, especially on a breakout of the S&P 500 range. Even if not, one will be hard-pressed to justify higher levels by the dealiign levels of both the US vs JP yield spread and the depressed risk-weighted index, justifying levels at or sub 110.00 in the pair. Technically speaking, the pair also remains in a fairly fragile position, capped by a descending trendline. Bottom line, look to lean on liquidity areas to engage in sell-side action. Even if technicals start to recover, I suspect that the loading of short positions at the test or break of upside liquidity will ensue.