EUR/JPY slips to 130.97/88

Being unable to sustain the rally from 130, EUR/JPY has once again returned to the major uptrend line that remains in force since July 2012. Accordingly, the support at 130.97/88, along with some of the lower levels, namely 130.30 and 129.88/33, is considered to be relatively safe. We continue to view 133.81 as the target for the pair in the medium term.

Over the weekend the gap between the shares of bullish and bearish towards the currency pair SWFX market participants has narrowed even more. Now the former constitute 48% of the market, the latter, consequently, take up 52% of the sum. This reflects the fact that the Japanese Yen has lost in popularity and is bought in 29% of cases (previously in 33% of them).