EUR/JPY remains bullish

It appears that the currency couple is forming a rising wedge pattern on a daily chart at the moment ahead of a major down-trend resistance line that halted rallies for more than three years. Being that the wedge is a reversal pattern, we favour a strong rejection of the pair once it approaches an apex located at a 106 level presumably in the middle of December.

The majority of the SWFX marketplace participants are bearish towards EUR/JPY, with 61% of the total amount of positions being short, leaving the remaining 39% to bulls. Orders, on the other hand, give a different signal, since the share of buy orders (61%) exceeds the portion of sell orders (39%).