EUR/JPY makes a correction

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Pressure will remain on the yen as before. Today, there is a shortage of fresh trading incentives, so the yen has come back a bit."
- Sumitomo Mitsui Trust Bank (based on Reuters)

Pair's Outlook 
A correction took play on Thursday, and the cross covered almost the same number of pips as on Wednesday, but in the opposite direction. The decline was stopped by the initial support at 128.71, represented by the weekly PP. The pair is seen regaining momentum, despite the technical indicators giving bearish signs on the daily time-frame. If the pair advances, it is likely to meet resistance around 129.80, close to the monthly S2. At the same time, the monthly S3 can provide support if the pair falls. 

Traders' Sentiment 
Yet another day the long positions take up 58% of the market. The share of sell orders increased by one percentage point, and now they account for 71% of the total.
© Dukascopy Bank SA

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