EUR/JPY pulls back to 127.71/03

Last week EUR/JPY, exhibiting strongly bearish sentiments, nearly reached the support at 124.30, which is the monthly S2 level. However, it seems that today the currency pair is inclined to display bullishness that we lacked a little earlier, near the former support area at 127.71/03 that is mainly formed by the up-trend line. Still, the recovery is likely to be shallow and is expected to be halted before covering 200 pips.

Popularity of the Japanese Yen has increased lately—it is now acquired in 30% of cases rather than in 25% as recorded on Jun 14. Regardless, it does not change the fact that the currency is one of the least frequently bought ones, although the advantage of bulls over bears in EUR/JPY is minimal.