EUR/JPY under selling pressure

The resistance at 133.81/29 did not let EUR/JPY to advance any further yesterday, forcing the pair to pull back to the monthly R1. However, the correction should be stopped by one of the closest supports and in the nearest future, if we are to believe the technical indicators that mostly give ‘buy' signals on the relevant time-frames. The dip is likely to be stopped by a combination of the 100-day SMA and the monthly pivot point at 130.69/03.

The negative sentiment towards EUR/JPY among SWFX traders has notably strengthened since publication of the previous report. The share of short positions has increased from 54% to 58%, meaning there is now a significant difference between those who consider EUR/JPY as bullish and those who expect the Euro to depreciate.