EUR/JPY struggles ahead of monthly PP

EUR/JPY continues its recovery from the 38.2% Fibonacci retracement of the November-December up-move. The currency pair has already broken a combination of the 55 and 100-day SMAs and it is currently looking at 141.70/44 as the next potential victim, a breach of which would in turn expose 23.6% level. This bullish scenario is also supported by the weekly and monthly technical indicators—they are mostly giving 'buy' signals.

Market sentiment remained virtually unchanged, as bears carry on holding slim (52%) majority of open positions. Long side of bullish pending orders expanded by 2-4 percentage points and is at 44-50% level depending on the range.