EUR/JPY forms second top

Despite the fact that EUR/JPY has broken through important resistance at 136.74/64 (monthly PP and 100-day SMA) the bias remains negative. First, because the down-trend at 137.93 is still intact. Secondly, being that the currency pair is forming a double top, which is better seen in the higher times (H4 and H1). The neckline of the pattern is in the region of the weekly PP, and a close below it will imply a deeper sell-off, down to the 200-day SMA.

The SWFX market remains almost equally divided between the bulls (49%) and bears (51%). There is more action among the pending orders, where the share of buy commands plunged from 60 to 40% as a result of the yesterday's rally.