EUR/JPY remains buoyant

While being upheld by the accelerated support line that connects the minima staged since Feb 3, EUR/JPY retains bullish momentum despite two days of poor performance. The positive outlook is also reinforced by the technical indicators, especially on the longer-term time-frames. Still, we should recognise potential risks to the recovery, currently represented by the 55-day SMA at 141.21 and the monthly R1 at 142.60.

As the rate keeps on rising, bears carry on crowding out the bulls, the share of whom has already come down to 39%. As for the orders placed 100 pips from the spot, the percentage of the ones to purchase the Euro declined from 69% to 60%.