EUR/JPY respects monthly R1 at 132.19

EUR/JPY has just confirmed the monthly R1 at 132.19 as a reliable level, being unable to penetrate it at the very first attempt. Eventually, however, we expect this resistance to give in and allow further advancement, momentum of which will be thoroughly tested by the four-year high at 133.81 that was reached this year, on May 22. In the meantime, the current pull-back should not cross the support at 130.29/23.

The dominance of the bears has become even more distinct after the weekend. The share of short positions grew up to 66%, while the portion of those betting on the stronger Euro in the future declined to 34%. This has happened despite the fact that EUR (43%)and JPY (40%) are nearly equal in terms of popularity among traders in their other crosses.