EUR/JPY tests five-month down-trend

EUR/JPY is currently testing the lower boundary of the bearish channel it has been forming since March. If the interest at 136.75 is not enough to initiate a rally, the pattern will be broken to the downside. In this case the next target will be this year's low at 136.24. However, the monthly technical indicators continue to suggest the single currency is going to appreciate relative to the Yen in the long run.

While yesterday traders were jumping on the bandwagon of a strong sell-off, today most of them are already expecting a rebound, namely 66% of the market. Meanwhile, the distribution between the buy and sell orders is 43% and 57% respectively.