EUR/JPY jumps over 2013 high

Although EUR/JPY has already closed this week's bullish gap, the bias remains to the upside. Once the currency pair stabilises near one of the nearby supports, such as a combination of the weekly PP and monthly R2 at 145.21/00, the buying is likely to resume, as suggested by the daily and monthly technical indicators. The Euro will then hit the weekly R1 at 147.89 while heading towards the 2007 low at 149.29.

Though the percentage of short positions fell compared to the report on Friday, the sentiment is nonetheless strongly bearish—63% of all open positions are to profit from depreciation of the European currency against the Yen.