EUR/JPY testing 142 JPY

Pair eroded strong resistance around 140 JPY and shot higher. At the moment it is testing weekly R2/55-day SMA and we expect it will not hold even the initial test. The pair should extend it's gains even further and test 142.70 in the medium to long term. Some short term bearishness could be expected around 141.72. In case of an unexpected failure the pair might dip back below 140 JPY, but should find support at 139.38/15.

Market sentiment changed marginally—bullish side decreased by 2% and is at 63% gauge today. Bears, however, are increasing their pressure on their counterparts. Bullish side of pending orders contracted by 10-15% and is at 36-49% gauge today.