USD/JPY rebounded from 108

USD/JPY had to come all the way back to 108 in order to revive the bullish activity. There market confirmed the rising trend-line and the monthly PP as the main medium-term support. The price is now ready to launch an attack on the resistance at 109 (weekly PP and 2008 Sep high). Once this obstacle it out of the way, the U.S. Dollar will be expected to target 110.70, namely the 2008 high, as implied by the daily and weekly technical indicators.

While only yesterday there was a substantial gap (20 percentage points) between the shares of long and short positions open on USD/JPY, today this difference is already negligible—eight percentage points.