EUR/JPY consolidating around 142 JPY

After a massive sell off few days ago the pair found support at 140.59/27, bounced back and at the moment is consolidating around 142 JPY. Any major moves in the short term would be rather surprising. We expect the pair to continue consolidating around 142. In the medium to long term we should await some increased volatility with slightly higher bullish bias. Main resistance at this point is around 143 JPY.

 

Bulls are increasing the pressure on the bears as share of bullish long positions increased by 35% to 40% (till 75% to 90% overall) depending on the range. Open positions, however, are equally distributed between the long and short traders.