EUR/JPY bounces off 55-day SMA

On Wednesday the pair depreciated and almost touched the 140 level; however, it did bounce back to trade around weekly S1 at 140.78. Today the pair has appreciated slightly and it is looking to break 141 level that is right in front of its current trading level around 55-day SMA at 140.89. We think that the pair falling below 140 JPY is unlikely, on the contrary, we expect it to gain in value and to break the major 141 level.

The sentiment towards EUR/JPY has returned to Monday's levels and right now there are 56% of bearish SWFX market participants. As for the orders placed 100 pips from the spot, orders set to sell have risen to 60% from 41%.