EUR/JPY trades below 141

This week the Euro declined against the Yen; however, today there was been a slight gain and the currency is trading above the weekly S1 at 140.78. We expect the pair will appreciate, as it is well-supported by the weekly S1 and a major level at 140.50, which supported the pair through March. Meanwhile, monthly technical indicators suggest the common currency is undervalued and is poised to strengthen.

The distribution between the proponents and opponents of the 18-nation currency's appreciation relative to the Japanese Yen remains more or less the same as yesterday - 46% and 54% accordingly.