EUR/JPY heads towards September low

After a brief correction, which initially was expected to extend back to the 200-day SMA and monthly PP, EUR/JPY has once again come under strong bearish pressure. Today, the currency pair is likely to close near the weekly S1, the last support that safeguards 132.22, namely the September low. Beneath this level the selling should intensify, which could force the price to decline further, down to the monthly S1 at 131.66.

The difference between the bulls and bears remains negligible: 53% of traders are long and 47% are short. A similar situation is observed in the distribution between the pending buy and sell orders: 49% and 51% respectively.