EUR/JPY rebounds from 100-day SMA

Yesterday EUR/JPY fell beneath the support 129.14/128.30 and approached the rising support line at 127.41/37, demand around which did not allow any further sell-off, sending the price back to the 55-day SMA at 129.91. The risk of such rapid downward moves remains, but as long as 127.41/37 is intact we will retain our bullish bias towards the currency pair.

The advantage of bears over bulls is now little less pronounced than yesterday, but still amounts to ten percentage points, although most of the technical indicators, as seen from the table below, are giving ‘buy' signals. Nearly the same difference in percentage points (9%) is between the buy and sell orders, in favour of the former.