USD/JPY preserves bullish momentum

The U.S. Dollar has just cleared yet another supply area and appears ready to continue the advancement, being well-supported by the two-month accelerated up-trend (currently at 105.50). The next objective is a combination of the weekly and monthly R3 levels between 108 and 107.50. If this resistance is overcome as well, USD/JPY will be in a good position to target the 2008 high that is standing next to 111.

During the last 24 hours there has been a notable increase in the portion of traders standing against the trend—from 62 to 71%, as more and more SWFX market participants reckon the latest rally to be overstretched.