USD/JPY closes the bullish gap

Since USD/JPY opened this week with an upside gap, there is likely to be a correction at least to 112, from where the pair will be expected to resume the rally. Subsequently, considering there are no significant resistances nearby, the US Dollar should reach 115 with relative ease. However, the currency may come under strong selling pressure here, as this supply area is represented by the 2007 Dec high and monthly R1.

An overwhelming majority of the SWFX market participants believes the Greenback has already reached the top and the currency is therefore bound to decline versus the Japanese Yen—at the moment 70% of positions are short.