EUR/JPY attacks support at 122 yen

EUR/JPY pushed through the recent lows today, and the currency pair is now testing a solid support at the level of 122 yen, which has been proving to be important since the beginning of spring. Unless the price rebounds from here, we may see the Euro testing 120 yen as early as next week. However, even if there is a rally, the overall outlook will remain negative, being that most of the technical studies are giving ‘sell' signals and attempts to recover will face fierce resistance from the 28-month trend-line, which at the moment may be found at 126 yen.

Euro-bulls have a slight advantage over their counterparts—16 percentage points, up from 6 pp yesterday. Meanwhile, the difference between the buy and sell orders contracted from 20 to 6 pp in favour of the latter.