USD/JPY 4H Chart: Channel Up

Dollar/Yen cross neared the monthly R2 yesterday. By crossing this mark at 123.52, the currency pair will reopen the last week's high at 123.60 for the bulls. However, these levels are unlikely to represent a major threat to USD/JPY's bullish trend. Long traders are watching the 125 mark, which coincides with the upper trend-line of the channel up pattern. Here we estimate a reversal to commence and bears may resume the sell-off as it happened last week. Weekly technical indicators are giving bearish signals at the moment. On top of that, three out of four SWFX traders are currently holding short positions with respect to USD/JPY. Sentiment has worsened moderately in the past 24 hours of trading.