EUR/JPY dips below 133 JPY

55-day SMA and monthly PP did not manage to keep the pair above the 133 JPY mark. At the moment it is trailing towards 100-day SMA around 134 JPY. Despite the strength shown by the technical indicators we could expect that the pair could trail as low as October low. It is a bit too early to talk what might happen after that. In order to neutralise most of this pressure the pair should show a solid close above the 20-day SMA. That would put September high on the map.

 

Market sentiment remains exactly the same as yesterday—55% of traders hold short positions on the pair; 64% of all pending orders are set in favour of the bulls as well.