EUR/JPY breaches 130.51/03

As it turned out, the dense area between the weekly PP at 130.51 and the monthly PP at 130.03 did not manage to contain the currency pair for more than a week, allowing EUR/JPY to cover more than a half of the distance to the next resistance zone at 132.23/131.72 yesterday. However, as implied by the technical studies, there is a low chance the price will stop there, eventually it is likely to return back above the major trend-line at 133.81/52 and thereby reinstate the bullish intentions.

The sentiment in the market has been subject to marked changes since the previous report. This was not reflected in the distribution between the long (47%) and short (53%) positions in EUR/JPY, but the levels of popularity both for the Euro and Japanese Yen notably increased, the currencies are now purchased in 50% and 40% of cases in their crosses.