EUR/JPY retreats

The first attempt of EUR/JPY to extend the gains beyond the nearest resistance at 132.38/131.72 (mainly formed by the weekly and monthly R1 levels) was unsuccessful, the pair is now descending and is about to hit the support that stretches from 130.74, where the 20-day SMA stands, down to 130.03, the current location of the monthly pivot point. Nevertheless, according to the longer-term technical indicators, the softness is expected to be temporary and eventually will turn into a robust rally.

There are notably less traders believing the Japanese Yen is going to appreciate, being that the share of positions in favour of a stronger Yen (across the currency pair) fell from 40% to 35% overnight. Respectively, there are now more bulls in EUR/JPY, their portion increased up to 48%.