EUR/JPY faces a line in the sand at 117.90/26

EUR/JPY had time today to descend down to 117.04, but bulls proved to be on guard, having already sent the price back above 117.90—the upper edge of the key support area that defends the medium-term positive bias towards the currency pair. Nevertheless, technical indicators are mixed at the moment and do not favour a soon emergence of a rally, which still has a higher chance of showing up on the chart than a breach of 117.90/26.

There was a significant drop in the number of supporters of a stronger Euro, as the share of long positions on EUR/JPY diminished to 30%, leaving 70% of the market to bears. The ratio between buy and sell orders has also been notably altered, becoming 64% to 36%, respectively.