EUR/JPY steps away from 132 yen

After several attacks on 132 yen the Euro retreated, and the price is already back at the trend-line we left last Friday. And while there is a chance that EUR/JPY will bounce off of 130.60/45, as suggested by the daily technical indicators, any rallies from here are likely to be shallow. Our base case scenario is a dip through the trend-line and the 55-day SMA. In this case the next target will be the monthly pivot point at 129.90, while in the longer term there will probably a retest of the 2015 low at 126.

The difference between the bulls and bears remains insignificant—53% of traders are long and 47% are short. As for the pending orders, majority of them (57%) are placed to purchase the Dollar.