EUR/JPY grinds lower

The currency pair continues to retreat from 133.81/50. The support at 132.61 has already been breached, meaning the monthly R1 at 132.09 is likely to be tested next. Additional buying pressure is expected to be encountered around 131.41/25, but there are few reasons to suppose EUR/JPY could not also test some of the lower levels, namely 55 and 100-day SMAs between 130.75 and 130.03.

There were no changes associated with the sentiment towards EUR/JPY—the share of longs is at 42%, while bears are in a majority with 58%. Nonetheless, the Japanese Yen is still gaining popularity among SWFX traders, as on average in its crosses the currency is purchased already in 47% of cases.