EUR/JPY disposed for decline

For the time being the weekly S1 appears to be enough to keep the bears at bay. However, we retain a bearish bias with respect to the pair because of the recent downside break-out from the triangle. One of the key resistances is now at 134.50. This supply area is created by the monthly PP, 200-day SMA and the rising trend-line, which makes it a probable ceiling for the medium term. The initial target is the September low at 132.20, and beneath it the Euro is likely to be offered until the price reaches 126 yen.

The market remains neutral before the big event. At the moment 48% of open positions are long. Among the pending orders, 54% are set to purchase the Euro.