EUR/JPY trades above 55-day SMA

We have seen the pair trading sideways, with some advances and declines but in the last ten days it has traded in a range between weekly R1 and weekly S1 (141.90 and 140.36). We expect that in short term the pair will continue to fluctuate in this range; however, some movements out of range is possible. We expect that it might fall towards monthly PP at 139.31, but to that it has to break strong support (55-day SMA) near current trading level.

The difference between the long (46%) and short (54%) positions has stabilised since the last time of writing. In the meantime, the share of orders to enter the market with a sell trade rose significantly from yesterday's 38% to 61%.