EUR/JPY rebounds from 132.56/51

Just as suspected, once EUR/JPY touched upon the positively-sloping trend-line at 132.56/51, the currency pair immediately went upwards. Accordingly, we would expect the price to target the weekly pivot point at 133.72 next. Moreover, the rally should not end there, but reach the upper boundary of the bullish channel the rate has been forming since the beginning of August.

The SWFX sentiment towards EUR/JPY has stayed neutral for a prolonged period of time. However, yesterday the share of long positions has suddenly soared by eight percentage points to 55%, meaning the sentiment has become bullish with respect to the pair, even though there is almost no difference between the levels of Euro's and Yen's average levels of popularity in the market.