USD/JPY settles down at new 11-week high

The USD/JPY exceeded all expectations and climbed above the 123.00 major level on Friday and even higher over the weekend. On Monday the Greenback is likely to remain flat, as the Bollinger band is supporting the pair from below, while the monthly R2 is preventing the Buck from edging higher. Technical studies, on the other hand, are still giving bullish signals, implying that the US Dollar might prolong its rally for at least another day. The lack of market movers, however, suggests otherwise, with a small correction due.

Bears still remain strong, as 71% of all traders are holding short positions, compared to 73% on Friday. The portion of buy orders dropped again, losing 14% points to 41%.