EUR/JPY is adding to gains

EUR/JPY tries to establish a bullish trend after French Flash Manufacturing (45.3 act./44.6 est.) and Services (47.3 act./45.1 est.) rose more than expected. If bullish holds the ground, 101.29 level (R1 Weekly) is likely to be the initial resistance line. A breach of this level would pave the way to 102.13 (Upper Bollinger band; R2 Weekly) and 103.74/53 (200-day ma; R1 Monthly) levels.

According to SWFX traders' sentiment, most of market participants (59%) are staying long on EUR/JPY, expecting the single European currency to appreciate relative to the U.S. Dollar. At the same time 41% of traders believe in an alternative scenario. As for the orders placed on the currency pair, the overwhelming majority (90%) are buy orders, leaving only 10% to sell orders.