- BMO (based on CNBC)
The pair has been undergoing a corrective decline ever since the exchange rate hit the 14-month resistance line two weeks ago. The demand around the 129.75 level is rather weak, thus, we expect the EUR/JPY currency pair to put the cluster circa 129.00 to the test, namely the 20-day SMA and the weekly S2. Technical indicators, on the other hand, suggest an opposite scenario is to prevail today. Nevertheless, the one-year long bearish trend remains intact and is unlikely to be broken, as the Euro is yet to unveil its bullish potential.
Bulls and bears broke out of equilibrium, as 53% of all open positions are now long, but 83% of all orders are to sell the Euro.