EUR/JPY declines ahead of up-trend

EUR/JPY moved north more than initially anticipated, but its outlook will remain bearish as long as the rising resistance line stays intact. If the price continues increasing it will hit the trend around 129.07, the current location of the 20-day SMA as well. Additional barriers are placed at 129.86/82 and 130.60, but should come into play later on. The downside is less crowded and therefore will be easier to penetrate.

Today's drop in EUR/JPY discouraged a small portion of bullish traders—their share in the market contracted to 51%. Being that their advantage in numbers is minimal, overall sentiment towards the pair retains its neutrality. Pending orders were influenced to a larger extent—the portion of buy ones grew to 54%.