EUR/JPY gains momentum ahead of 127.94

Once the currency pair has recommenced a recovery, the daily technical indicators turned bullish, even though the signals are moderate for now. The bulls remain cautious after a sharp rally, as a key resistance at 127.94 is still intact and could again initiate a sell-off, but eventually is expected to give in and expose some of the higher levels, such as 129.21/129.61 and 130.73.

The market participants are undecided with respect to the future behaviour of EUR/JPY, being that 45% of currently opened positions are long and 55% of them are short. Looking at the orders, the sentiment is different, as 70% of traders intend to buy the Euro and only 30% plan on selling it.