USD/JPY retreats to 104.92/61

Proving to be unable to sustain at the moment a rally for straight six trading days USD/JPY underwent a bearish correction yesterday, which already appears to have ended at 104.92/61. Consequently, the price is now ready to advance towards the resistance at 105.86/65, after which there will be a good possibility of a rally up to the peaks observed in the first half of 2008 circa 108.60.

Present sentiment towards USD/JPY is vastly different from what was recorded yesterday, being that the percentage of long positions has plummeted from 57% down to 31% just within 24 hours. Apparently, many of the traders are concerned that the currency pair has already exhausted its bullish potential.