EUR/JPY remains below monthly R1

Although weekly and monthly studies are persistently giving ‘buy' signals, EUR/JPY is currently unable to surpass the monthly R1 at 132.09 and thus may fell short of expectations. Still, the key supports are intact, meaning it may take some time for the currency pair to eventually gain traction that has been missing since the beginning of February.

Last week the Japanese Yen experienced a sudden drop in its popularity. Today the attitude towards the Asian currency appears to be better, since the share of Yen-long positions in its crosses increased by three percentage points to 38%, but is still below its recent peak of 40%. Meanwhile, the sentiment towards EUR/JPY is neutral—48% of positions are long and 52% are shot.