EUR/JPY is directionless

Even though our view is skewed towards re-emergence of a rally and subsequent erosion of 127.94, the currency pair is presently in a lull, as the whole market, refusing to decisively move in any specific direction. If a dip starts to develop, in spite of the current bullish signals, it should be limited by a strong support line at 123.29 and then quickly reversed.

Currently there is almost no difference between the shares of long and short positions on EUR/JPY, which constitute 49% and 51% of the market respectively. Simultaneously there is a notable increase in buy orders, the portion of which has surged up to 73%, regardless of absence of change in EUR/USD.