EUR/JPY adds pressure on 123.29/122.70

For the time being a major support zone at 123.29/122.70 is keeping the price away from lower levels. In case the area is penetrated, EUR/JPY could easily slide down to 121.10/120.92 at first, then target the 55-day SMA at 119.91. Conversely, a recovery will imply a return back to 125.02/124.96, but at the moment such scenario appears to be a low probability event, as 123.29/122.70 is being eroded.

Bullish sentiments are strengthening towards EUR/JPY, since the share of long positions has increased up to 59%, while bears are losing their share. This could mean the market is considering that the pair has bottomed out. The ratio between buy and sell orders is 65% to 35% respectively.