EUR/JPY commences rally

At the moment the currency pair is fluctuating around a new monthly pivot point at 130.30, but at the same time showing willingness to climb over the nearest weekly PP at 130.95, which is not supposed to contain bullish potential of EUR/JPY. Afterwards the price will most likely advance further, up to the area at 132.58/131.93 that safeguards a four-year high.

The current distribution between the long and short positions is the same as yesterday, namely 46% to 54% respectively, meaning that the sentiment of SWFX traders is moderately bearish with respect to EUR/JPY, whereas the Japanese Yen on average in its crosses is purchased in merely 27% of trades.