EUR/JPY defies 106.70/107.10

Even though with a little bit of hesitation at first EUR/JPY has successfully overcome a major down-trend resistance line at 106.70/107.10, significantly increasing chances of a follow-up rally that might push the price to even higher levels. The initial resistance lies at 108.13, while subsequent obstacles could be found at 109.09/25 and 109.71. Daily and weekly indicators too reinforce bullish view on the pair.

The gap between the shares of bulls and bears has notably declined. Now 56% of all the positions opened are short and 44% are long, implying diminishing conviction of traders in the weaker Euro. A different picture is observed with pending orders, most of which (59%) are to buy the common currency and 41% are to sell it against the Yen.