USD/JPY dives beneath 104.12

USD/JPY has gained a solid foothold above the May high and is therefore set to advance further. The next serious obstacle for the rally is at 104.94/92, where the weekly R1 merges with the 2008 January low. And while in the nearest future this resistance may not let the price to move freely, the monthly indicators suggest this will not affect the long-term bullish prospects.

Although the portion of open long positions is currently below the 10-day average, they continue to take up the largest part of the market, namely 56% of it. In the meantime, while the difference between the buy and sell orders within 50 pips from the spot narrows, within 100 pips the tendency is completely opposite.