EUR/JPY stays above 131.18

While yesterday the currency pair moved closer to the rising support line at 131.18, today it demonstrates absence of any momentum, trading in a very narrow range. This situation can last for a few more days, but the eventual outcome should be re-emergence of a rally towards 133.39/10, although 134.60/40 is also falls into the danger zone in the short term.

Demand for the single European currency has increased—the share of long positions on EUR/JPY added two percentage points since the last report, but the overall sentiment is negative—63% of positions are still short. The portion of buy orders at the same time changed marginally, from 60% to 61%.