EUR/JPY to re-test 127.94/40

Surprisingly, the price did not even have to return back to 123.29/122.86 in order to restore the bullish momentum, but recommenced a recovery soon after hitting a weekly pivot at 124.91. The current area in focus is 127.94/40, which in turn is located just below a confluence of a monthly R1 and a weekly R1. Even though this zone managed to withstand the last time it was tested, there are now few doubts that it is going to hold for long.

While the Japanese Yen is tied with the U.S. Dollar in terms of popularity among SWFX market participants, being bought in 57% of cases, the Euro is not in such a great request—45% of positions opened in its crosses are long. Accordingly, bears dominate EUR/JPY, constituting 66% of the investors.