USD/JPY's still active

As it turned out, a more pronounced correction than the one observed on Friday was not necessary for the bulls to regain control of the market. At the moment of writing the US Dollar has already advanced more than 60 pips against the Yen. And if USD/JPY settles above the 2007 Dec high, the monthly R2 at 117.30 will be expected to become the next destination of the pair, also since the daily and weekly studies are mostly giving ‘buy' signals.

The SWFX is largely undecided with respect to the future of USD/JPY—45% of positions are long and 55% are short. However, there are substantially more people willing to purchase the Dollar (72%) than to sell it (28%) 100 pips from the spot.