EUR/JPY settles above 100-day SMA

Although we initially were expecting the 55 and 100-day SMAs to contain the rally initiated at 127.86, the currency pair seems to preserve the upward inertia and is advancing further. EUR/JPY is currently on the verge of getting the monthly pivot point off the way, in which case the trend-line the pair has recently breached will be re-tested. However, the near-term technical indicators are largely silent.

The amounts of traders who foresee stronger single European currency relative to the Japanese Yen and who believe in the opposite scenario have levelled off. Now both long and short positions take 50% of the market, meaning their sentiment is neutral towards the currency pair.