USD/JPY erodes resistance at 104

As USD/JPY approached 104, the rate of the U.S. Dollar's appreciation slowed down. However, the currency pair still retains the potential to surpass the 2013 highs, even though the technical studies in the near term do not support the bullish course of events. If the price breaches the resistance, a recent peak at 105.43 will be deemed the next objective, though the monthly R1 at 104.25 and weekly R3 at 104.60 will oppose the advancement.

After a significant drop in the number of bullish market participants, the distribution between the long and short positions stabilised. Right now 63% of traders expect the U.S. Dollar to increase in value and 37% believe in an alternative scenario.