EUR/JPY turns around at 139

Although early this week the single European currency came under strong selling pressure, once it reached the 2009 highs at 139 it managed to rehabilitate and climb back above the 100-day SMA, 38.2% Fibo and the monthly pivot point. Accordingly, EUR/JPY is set to advance, especially considering that the weekly and monthly technical indicators are mostly giving ‘buy' signals.

Unlike the situation five days ago, when a majority of the SWFX market participants were expecting depreciation of the Euro, there is now no significant difference between the amounts of bulls and bears. Meanwhile, the share of orders to purchase the common currency increased from 44% up to 61%.