EUR/JPY challenges 117.90/11

An initial weak support at 119.08 gave in and the currency pair is presently testing a subsequent level at 117.90/11, which is of the substantially greater significance. If it manages to halt the bears, then the positive outlook, suggested by a majority of technical indicators, will be preserved. A close beneath this area will be considered as a bearish signal, as it may mean a decline down to 112.43/111.43, a location of the 55-day SMA.

The ratio between long and short positions is largely unchanged, being 37% to 63%, respectively, at the moment. Accordingly, the current sentiment towards EUR/JPY is negative and the market seems to expect the bearish correction to deepen further. As for the orders, 53% of them are buy and 47% are sell.