EUR/JPY closes above Feb 6 high

Since Apr 4 EUR/JPY has already covered more than nine figures, though the rally has stalled recently, following a breach of Feb 6 high at 127.73. At the moment the currency pair is eroding the monthly R2 at 128.44 and is likely to continue moving forward, en route to 131.47/130.86. The next resistance in line will then be 134.40, a level previously seen back in 2009.

The bearish market participants have enhanced their advantage over bulls, as the former presently constitute 56% of the market and the latter 44% of it. On the other hand, an overwhelming majority (85%) of positions placed on EUR/JPY are to acquire the common European currency.