EUR/JPY retreats from 55-day SMA

As EUR/JPY failed to extend the gains beyond the 55-day SMA today, the currency pair is now trying to find support in the face of the monthly PP and the 38.2% Fibonacci retracement level of the November-December rally. In case this will be insufficient to halt the decline, there is also a tough demand zone at 139.37/03, created by the 100-day SMA, weekly PP and the 2009 highs.

Cheaper Euro is currently attracting more bulls into the market—the share of open long positions increased from 41% up to 43%, but the sentiment nonetheless for now remains moderately bearish. In the meantime, the portion of buy orders set 100 pips from the spot grew by five percentage points to 70%.