EUR/JPY stabilises near 130 yen

EUR/JPY confirmed the falling resistance line last week, therefore the bias is to the downside. The rallies should be limited by a dense supply area around 130.00 (weekly PP, monthly S2, down-trend, and 20-day SMA), while the Euro is expected to target the key level at 127.00. If this support gives in, the next long-term objective will likely be already at 120.00. The bearish outlook is also reinforced by the technical indicators, especially on the weekly chart.

The share of long positions in the SWFX market returned to its 10-day average, namely to 56%. In the meantime, the difference between the buy and short positions is minimal, merely 6 percentage points.