EUR/JPY limited by 137

The down-trend in EUR/JPY remains intact, as the currency pair is unable to gain a foothold above the resistance around 137. This supply area is mainly created by the 38.2% Fibonacci retracement of the Sep 19-Oct 16 down-move and a two-month trend-line. But if the bulls manage to overcome this obstacle, the next target is most likely to be 137.50—the current location of 50% Fibo and 100-day SMA.

The Euro is becoming more attractive to the traders. The percentage of the long positions has gone up from 56 to 59%. Meanwhile, the share of orders to buy the European currency plunged from 65 to 43%.