EUR/JPY probes 100-day SMA

EUR/JPY preserves strong bullish momentum, gaining every single day since Jan 20. However, the currency pair is closing in on a solid supply area circa 132.50, which consists of the 100-day SMA and the eight-month down-trend. Accordingly, the recently established accelerated up-trend is highly to broken to the downside during the next two weeks. The bearish scenario is also implied by the technical indicators, especially in the weekly and monthly timeframes.

The sentiment in the SWFX market remains neutral—at the moment 46% of positions are long and 54% are short. The distribution between the buy and sell orders placed 100 pips from the spot is also more or less the same—56 and 44%, respectively.