The Euro is trading flat against Japan's yen; might touch 97.22

The 17-nation currency erased Monday gains versus the Japanese yen and at the moment the pair is heading towards lower Bollinger band at 97.22. A breakout of this initial resistance level would pave the way to the potential levels at 100.20 (23.60% Fibo; 55-day SMA) and 101.61 (Upper Bollinger band).

The bullish sentiment on EUR/JPY has slightly eased lowering from 69% yesterday to 63%. Therefore, the portion of short positions has increased from 31% to 37%. At the same time, the bearish outlook on EUR/JPY has deteriorated since yesterday as 63% (78% yesterday) of traders expect the pair to continue moving downwards and 37% of market participants stick to an opposite scenario.