USD/JPY takes off from 106.50

The US Dollar maintains the upward direction after retreating to the support at 106.50 earlier this week. And since there are no significant resistances nearby and most of the studies on the weekly time-frame are giving ‘buy' signals, the rally should extend at least up to 108. There the pair will already face a dense supply area, created by the monthly pivot point, weekly R1 and 23.6% Fibo retracement of the Jul-Oct up-move.

The market remains undecided—45% of positions are long and 55% are short. However, there was a significant increase in the percentage of buy orders set 100 pips from the spot price—from 50 to 59%.