USD/JPY buoyed by 104.36/00

The market has just confirmed 104.36/00 as the new support and there are now even more ‘buy' signals on the weekly time-frame than yesterday, meaning the U.S. Dollar is set to appreciate further. The currency pair should not encounter any significant obstacles until it rises up to 105.87/69, where the recently violated up-trend could enforce a notable bearish correction.

As it turns out, the SWFX market participants chose not to trust the technical indicators—an overwhelming majority of the traders are currently holding shorts, namely 66%, in anticipation of the buck's depreciation relative to the Yen, even though on average in their crosses the currencies are bought with nearly the same frequency.