EUR/JPY rebounds from 126.53

Yesterday EUR/JPY briefly spiked below the support at 127.59/46, but the dip was held by a weekly S1 level at 126.53. Now the currency pair is headed towards 128.22/15, a resistance zone formed by the weekly pivot point and 20-day SMA. Once it is overcome, the price is likely to target the up-trend resistance line at 129.71, also the current level of the 55-day SMA.

Regardless of the fact that on average the Japanese Yen is now acquired less frequently (25%) than yesterday (30%), the sentiment of market participants towards EUR/JPY became skewed towards the bearish side. Presently 47% of positions on the pair are long and 53% are short.