EUR/JPY recovers from 128.73/57

As it turned out, the cluster of pivots and the 20-day SMA at 128.73/57 was enough to hold the price from falling further. Should it have happened, the 100-day SMA at 128.13 and 127.37 would be there to provide even more support. In the meantime, EUR/JPY is moving onwards and is likely to gain a toehold above the 55-day SMA, before testing the closest resistance at 131.24/18.

There are now more people seeing the Euro as bullish relative to the Japanese Yen than last week, but it does not change the fact that the sentiment towards EUR/JPY remains bearish—43% of positions are long and 57% are short. In its currency pairs the Euro is bought in half of the cases.