USD/JPY recovers from 104.17/09

USD/JPY seems to have already overcome intermediate weakness and is ready to challenge the resistance at 104.92/80. And while this supply area may delay development of the rally, the next one at 105.79/54, created by the weekly R1 and Bollinger band is highly unlikely to hold the currency pair back for long. Meanwhile, we expect the monthly PP and May high to prevent extensive losses.

The gap between the bulls and bears is exactly the same as yesterday—the latter take up 65% of the market, meaning that traders expect the U.S. Dollar to move opposite to the latest trend. Among the pending orders, the amount of buy ones substantially contracted, from 71% to 65%.