EUR/JPY descends

At the moment EUR/JPY is pulling back after a sharp rally staged two days ago that pierced through the tough resistance. Once the currency pair confirms this area as the support, it is expected to move closer to the major rising trend-line, but will have to pass through the supply zone created by the weekly and monthly R1 levels at 132.23/131.72 in order to test it.

Although on average people are preferring the Euro to other currencies more and more frequently—at the moment 53% of positions in EUR crosses are bets that the common currency is going to gain value (50% yesterday and just above 40% last week), the situation in EUR/JPY stays more or less the same, namely there is a slight advantage of the bears (54%) over bulls (46%).