EUR/JPY is underpinned by an up-trend

Today's price action is likely to draw a pin bar with a long lower shadow, which would imply strong buying pressure between 102.63 and 102.26, limiting possible losses of the Euro's value, at least in the short term. However, since the trading range of the pair is narrowing, a rising wedge is being formed on the chart, meaning an increased downside risk, as this is believed to be a reversal pattern.

Relative positioning of bulls and bears has undergone a significant change. Now short positions constitute a majority—63% of the market. Accordingly, the share of long positions is 37%. Alternatively, disposition of orders gives a different signal, as 57% of commands are to buy the Euro and 43% are to sell it against the Japanese Yen.