USD/JPY charges towards 108 at full speed

The U.S. Dollar is getting close to a significant resistance zone around 108, formed by the weekly R1, monthly R3 and Bollinger band. Accordingly, we should be wary of a downward correction, even though there are almost no ‘sell' signals among the technical studies. If there is a sell-off, it should be stopped before the support at 105.44/12 (two-month up-trend, monthly R1 and 2014 Q1 high) is violated.

At the moment a large portion of the traders sees the latest advancement as overextended—as many as 72% of open positions are short. In the meantime, 59% of pending orders are to purchase the Dollar.