EUR/JPY ignores 55-day SMA

The currency pair effortlessly passed through the 55-day SMA and is about to surpass the weekly R1 level at 130.48 as well. Additional resistances are at 131.01 and 132.19, but we see the biggest threat to the latest bullish momentum at 133.81 (three-year high reached on May 22), which is likely to persist until the up-trend support line at 127.40 gives in.

A sudden increase in the level of Japanese Yen's popularity in the market—on average in its crosses the currency is now bought in 31% of cases, 27% yesterday, was not reflected in the traders' sentiment towards EUR/JPY, where 41% of market participants are long and 59% are short, contradicting the generally negative bias towards the Yen.