USD/JPY—the sky is the limit

It look a little longer than initially expected, but the upward momentum is finally gaining traction. This is evidenced by a majority of the technical indicators on all time-frames giving ‘buy' signals. Moreover, the scarcity of any notable resistances decreases a possibility of the pair making a sudden U-turn. The only serious obstacle USD/JPY has to face before testing the 2014 Q2 high is the monthly R1 at 103.54.

Just as yesterday or five days ago, the sentiment in the SWFX market is strongly bullish with respect to USD/JPY—as many as 74% of open positions are long, leaving the bears in a distinct minority with only 26%.