The European currency declined against the Japanese Yen again last Friday, but the monthly PP and the ascending channel's support line managed to keep the pair from edging lower. However, price opened beyond the channel's borders, with the monthly and the weekly PPs now acting as the immediate resistance around 125.85. In order to preserve the channel, the pair is required to pierce this resistance cluster, but there might be insufficient impetus for such action. Technical indicators are giving bullish signals, bolstering the possibility of the positive outcome. We should not rule out the possibility of a slump towards the 20-day SMA and the weekly S1 circa 124.85.
Today 54% of traders are long the Euro, while slightly more than three quarters (76%) of all pending orders are to acquire the single currency.