EUR/JPY gravitates towards 131.15

For now EUR/JPY manages to hang above the April high, but there is a substantial risk of the currency pair failing to find sufficiently strong support not to fall down to 127.73/65, a February high. Accordingly, we would expect either more consolidation or softness before the Euro recommences appreciation relative to the Japanese Yen with the first important resistance located at 134.40, 2009 Dec high.

Currently the difference between the shares of the bulls (49%) and the bears (51%) is only nominal—2%, meaning that market participants are mixed in their sentiment towards the pair and are not decided with respect to its future direction. There is no difference between the amounts of buy (52%) and sell orders (48%).