USD/JPY is strongly bullish

USD/JPY is explicitly bullish and is likely to stay that way at least until it reaches April's high and monthly R2 near 104. However, first the currency pair will have to overcome a combination of the monthly R1 and weekly R3 at 102.91. Once this obstacle is out of the way, there should be no tough levels 100 pips in any direction. Meanwhile, only the monthly technical indicators support the bullish outlook, with the daily and weekly ones being mixed.

Yesterday's dip in the share of long positions could have been a result of the market participants starting to take profits on the latest surge. But at the same time many of the traders were encouraged by the rally, since the percentage of bulls went back to 73%.