USD/JPY spikes beyond 78.64/78

USD/JPY has sped up development of its rally and has already surged above 78.64/78, meaning that the next resistance that is likely to fall a victim to bulls is at 79.04/09. Additional levels are at 79.34/38 and 79.55/68 and should also be challenged by the pair fairly soon, since support at 78.04/77.98 is able to absorb downward momentum and restore bullish bias.

According to SWFX traders' sentiment index, the market continues to expect appreciation of the USD comparatively to the JPY, as 72% of all the positions on the pair are long, leaving merely 28% of the market to those, who await strengthening of the Japanese Yen. Besides, the amount of buy orders constitute a majority—69%.