EUR/JPY jumps off the weekly S1/61.8 Fibo

Pair found support around 136.75/50 a few days ago and seemingly has received a bullish impetus which pushed it to test the area around 139 JPY. We expect it to  hold initial test, but to give up eventually. The 140 JPY mark should cause much more trouble, it might even send the pair towards the 137 JPY once more. However, we expect it to consolidate between 139-138 JPY. Unexpected dip below the weekly S1/61.8 Fibo could provoke a further sell off.

 

Market sentiment is virtually unchanged after a 10% decrease in bullish side yesterday. At the moment bulls hold 60% of all of the open positions. Bears, however, are increasing their pressure as bullish side of pending orders contracted by 10-15%.