USD/JPY about the reach Sep high

USD/JPY is currently trading just below the strong resistance at 100.88/40, created by the monthly R2 and the September high. However, the upward impetus is not yet considered to have run its course—there remains potential for a surge up to the May high at 103.74, as suggested by the majority of monthly technical indicators (five out of eight are giving ‘buy' signals).

Regardless of the 40-pip downside gap after the weekend, the ratio between the open long and short positions on USD/JPY remains unchanged, being that 73% of the market participants reckon that the U.S. Dollar will appreciate and only 27% believe in an alternative course of events.