EUR/JPY trades below weekly R2

The pair broke the weekly R2 at 143.03; however, it was not able to consolidate above this level as the major 143.50 level sent it back below weekly R2. The pair might slip lower towards weekly R1 at 142.28 as it is trading below 143 level again. Month's technical indicators are bullish; however, in the near term they are sending mixed signals. We expect the pair to fluctuate between 142 and 143.

The sentiment has become more bearish, right now 62% of the SWFX market participants expect the Euro to decline against the Yen. Concerning the orders, 69% of them are set to sell.