USD/JPY erases recent losses

Given that the 2013 highs and the monthly PP are now not impeding USDJPY's advancement, the price is poised to mount the weekly R1. Afterwards the Dollar may thrust towards the rising resistance line at 105.87/70, which, together with the monthly R1 at 106.57, could force the bulls to take a short break before the rally will be extended further, as implied by the weekly and monthly indicators.

Regardless of the greenback's outstanding performance lately, there are more traders believing the currency's bullish momentum has been already exhausted. Out of all the open positions, 66% are short. At the same time the portion of buy orders that are set next to the spot is on the decline—from 52% down to 38%.