EUR/JPY on the defensive after a bullish break-out

Despite EUR/JPY breaking the two-month down-trend that connects the Sep 19 and Oct 9 peaks, the pair is still facing strong selling pressure. The immediate support is at 135.80, represented by the recently violated trend-line, monthly S1 and weekly PP. If this supports fails to act as a floor, instead of testing the 55 and 100-day SMAs at 137.70 the European currency will be expected to re-visit this year's low at 134.10.

Little by little the bulls are building an advantage over the bears. Right now the former take up 56% of the market (53% five days ago). As for the orders, the share of the buy ones has gone up from 57 to 65% within the last 24 hours.