EUR/JPY supported by 130.60/50

So far Thursday is bullish for EUR/JPY, as the currency pair bounced off of the 55-day SMA, up-trend, and weekly PP at 130.60/50. However, the recovery should be short-lived, considering that the Euro is closing in on the major supply area, created by the long-term down-trend and the 100-day SMA. The rally is not expected to extend beyond the 132.20/131.80 area. However, if we do see a close above the 100-day moving average, then the 200-day SMA at 134.30 will probably be tested next.

The difference between the amounts of bulls and bears in the market remains insignificant—55% of positions are long and 45% are short. Meanwhile, the share of buy orders rose from 57 to 62%.