USD/JPY's upward momentum to be tested by 104

The U.S. Dollar is getting closer to the last quarter's peak, which is reinforced by the monthly R2 level, and it may prove to be difficult to break, even though most monthly indicators are presently bullish. The July high at 103 will be expected to keep the price afloat, in case there is intensive selling. But once USD/JPY surpasses 104, there will be few doubts the price is going to challenge 2014 high at 105.50 next.

There are currently slightly more bullish traders (57%) than there are bears, although just a few days the gap amounted to more than 40 percentage points. Concerning the orders, the amounts of buy (49%) and sell ones (51%) are presently equal.