EUR/JPY moves lower, breaches 55-day SMA

The single European currency moved lower against the US dollar, breaching 55-day simple moving average. If a downside dynamics continues, bears might face an initial  resistance level at 98.63 (lower Bollinger band). A breakout here would expose the 97.20/16 zone (S1 Monthly; S2 Weekly) and 95.60 (June 1 Low) for bearish currency traders.

EUR/JPY traders' sentiment is bullish as 61% of investors are currently holding long positions and 39% of market participants keep short positions. Allocation of pending orders reveals a negative stance of market participants over the EUR/JPY outlook as 71% of investors expect the pair to move downwards.