EUR/JPY opens below 100-day SMA

While before the weekend EUR/JPY did in fact advance as initially expected, being underpinned by the 100-day SMA, this week the instrument opened with a substantial downside gap. Still, the bias remains positive towards the Euro, as most of the technical indicators are giving ‘buy' signals and one of the key supports, namely the 2009 highs at 139, stays intact.

Despite the Euro plummeting after a two-day pause, the status quo between the long (51%) and short (49%) positions is nonetheless preserved. In the meantime, the buy orders placed on EUR/JPY enhanced their dominance over the sell ones, as their percentage went from 61% up to 64%.