USD/JPY's bullish momentum gains traction

USD/JPY draws closer to the major trend-line it has recently breached. Accordingly, the baseline scenario is a bounce off the resistance at 102.14 with a possible breach of 101.20 afterwards. But if the long-term technical studies turn out to be true and the U.S. Dollar keeps on recovering despite the 100 and 200-day SMAs, there will be a good opportunity for the currency pair to try to reach this year's high at 104.

The SWFX market participants remain largely convinced the greenback will continue gaining ground, being that 71% of them are holding long positions. At the same time, 67% of the orders placed 100 pips from the spot are to acquire the buck against the Yen.