EUR/JPY to bounce off 120.90/40

An initial resistance at 123.29, being a 33-month high, remains intact for now. Still, the sell-off initiated by this temporary cap appears to be too weak to portend a reversal. The current bearish correction should be limited by the support at 120.90/40, but could be also stopped by 119.03/118.91. There the currency pair is expected to commence a recovery and eventually erode 123.88/29, opening the way towards 126.11 and even higher levels.

The difference between the amounts of bullish (27%) and bearish (73%) towards the currency pair traders has narrowed, but the change did not introduce any notable changes to the sentiment that is currently strongly negative. The ratio between buy and sell orders is 54% to 46%, respectively.