EUR/JPY faces 140.43/03

The support implied by the 55-day SMA and the weekly PP failed to keep EUR/JPY buoyant—the currency pair plummeted through 141.47 and reached the monthly S1 at 140.13. Here the demand may force the sell-off to stop, also considering that the weekly and monthly studies are largely bullish. Still, there is a high probability of the decline extending towards the 2009 highs at 139, before the bulls again seize control of the market.

Because of the major downswing, a substantial portion of traders attempted to exploit cheapness of the Euro, believing its value will be able to recover. Compared to the yesterday's figure, the share of long positions surged from 48% up to 64%.