EUR/JPY spikes below 127.85/41

We were short-term bearish on EUR/JPY, but did not expect the currency pair would fall through the supports at 127.85/41 and 126.80 so easily. Nonetheless, it seems that bulls have managed to put the price back above the rising trend-line, but a risk of a deeper decline is not negligible now, even though the weekly and monthly technical indicators are unchangeably bullish.

While popularity of the Japanese Yen in the market is fairly stable (and low—it is acquired in only 28% of cases), traders are choosing to purchase the single European currency less and less. In its crosses 40% of positions are long the Euro, this is down from 45% yesterday. In EUR/JPY in particular the share of longs is 51%.