EUR/JPY targets 200-day SMA

EUR/JPY has already passed through the 55 and 100-day SMAs, leaving the 200-day SMA at 134.35 exposed. A test of this level is likely to trigger a rally, being that it is reinforced by the weekly and monthly S1s. However, the overall outlook on the currency pair is bearish, and the upside is seen limited by supply around 136.60. Meanwhile, key resistance is represented by the falling trend-line at 138.

Sentiment among the SWFX traders is no longer bearish. A gap of 14 percentage points has been reduced to eight points during the last 24 hours. At the same time, the share of orders to go long the Euro decreased from 61 to 53%.