EUR/JPY tops 18-month high

EUR/JPY has exceeded our most optimistic estimations for the previous day, as Jan 10 was marked with a close above 117.90. A resistance line at 118.89 is not considered to pose a serious threat to the bullish momentum, neither does 120.40, whereas 123.29 might become a likely place for bulls to lock their profits, thus initiating a pull-back. For the time being technical studies give "buy" signals and the current recovery is set to continue in the near term.

The share of bulls in the market started to recover. Nevertheless, the dominance of bears is undeniable, since presently 71% of all the positions opened in the SWFX marketplace are short, leaving only a small portion to those who expect the Euro the appreciate. Orders, however, give no particular signals, with 52% of them being buy and 48% being sell.