USD/JPY's upward momentum hangs by a thread

USD/JPY is putting more and more pressure on the support at 108, greatly increasing the risk of the level being breached. If this is the case, there will be almost no significant levels to underpin the currency pair until 106, where the 55-day SMA merges with the monthly S1. But if the bulls manage to pull themselves together and push the Dollar away from 108, we are highly likely to see the pair re-visiting the 2008 high at 110.70.

The relative amount of bears in the market decreased, but they remain in the lead with 58%. As for the orders set 100 pips from the spot price, the portion of the ones to purchase the Buck grew from 45 to 58%.