EUR/JPY fails at 132.19

The currency pair did not manage to stay above the resistance at 132.19 for long and fell down to the weekly pivot point at 131.23, which safeguards 130.54/23. Slightly lower there is an even stronger area formed by the 55 and 100-day SMAs, but mainly by the major up-trend support line at 129.72/40. Still, we do not expect the price to descend this low, some of the nearest levels should be sufficient to underpin EUR/JPY.

The share of bearish market participants contracted even further, but the overall sentiment is nevertheless negative towards EUR/JPY, being that short positions maintain a majority, namely 59% of the market. As for the orders, 64% are to buy and 36% are to sell the single European currency against the Japanese Yen.