USD/JPY erodes 103.52/34

Although the upward impetus noticeably weakened following a test of the resistance between 103 and 104 last week, USD/JPY carries on grinding higher. The current obstacle is represented by the 23.6% Fibonacci retracement of October-December rally, whereas the key zone is created by the 2013 highs and the monthly R2 around 104. In the meantime, the support is provided by a combination of the 55 and 100-day SMAs.

The portion of bullish market participants declined two percentage points, but there is still plenty of them to claim that the sentiment with respect to USD/JPY is strongly positive—73% of open positions are long and only 27% are short.