EUR/JPY trapped between 129.89/21 and 127.86

Last week a rebound from the monthly S1 was capped by the resistance at 129.89/21 that consists of the 55 and 100-day SMAs. Today the currency pair appears to be willing to bounce off the monthly support at 127.86 once again and will then face the same obstacle it did recently. We do not expect this time to be different from the last one, the near-term perspectives are bearish.

Despite a strongly bearish sentiment towards the Japanese Yen overall in the SWFX marketplace—only one in four positions implies that the currency will increase in value, in EUR/JPY the shares of bulls and bears are not significantly different, 53% and 47% respectively.