EUR/JPY erodes 132.55/19

EUR/JPY has just soared beyond the monthly R1, confirming its near-term bullish outlook. However, before targeting 133.08, and especially 133.81, the currency pair should first close above 132.19, which will mean that the resistance is finally breached and there is one obstacle less. In case the current rally proves to be unsustainable in the end, the supports at 131.23, 130.49/23 and 129.74/29 will try to stop Euro's depreciation.

Even though the difference between the shares of bullish and bearish towards EUR/JPY traders has narrowed since yesterday, it is still enough in order to say that the outlook of SWFX market participants on the currency pair is negative—60% of all open positions are short.