EUR/JPY is headed towards 117.39/90

EUR/JPY maintains its upward course and for now does not give strong reasons to believe this tendency is to end any time soon. However, the rally initiated on Dec 11 may seem as rather sharp and thereby in need of a natural bearish correction or at least a temporary consolidation phase. The most likely resistance level where the price could make a short stop is at 117.39/90—18-month high.

Bulls continue to regain their positions as their already constitute the same amount of positions in the market as bears, who are becoming found less often. As for the orders, a notable majority of them (72%) are to acquire the single European currency, thus adding the positive outlook of the pair.