EUR/JPY stable around 132

Pair has reached new high slightly above 132  and for has been fluctuating in 80 pip range in the last 3 days. The stochastic indicator, which is constructed to predict major turning points, in the short and medium term sends sell signal suggesting that we might see a similar development as in recent weeks—pair reaches or tests new high, dips by few hundred pips and then quickly restores all the losses. It also seems likely due to the cluster of resistance levels slightly above the current trading price. Long term trend, as predicted by technical indicators, should remain bullish. 

 

Bulls did not mange to increase the share of their holding as they continue to hold 35% of all outstanding positions. However, 64% of all pending orders are posted by them suggested that closer to the end of the week market sentiment  might switch significantly.