EUR/JPY erodes 50% Fibo

EUR/JPY continues to put pressure on the 50% Fibo of the Nov-Dec rally. Judging by the technical Indicators, the bulls should eventually regain strength and overpower the bears. However, should the sell-off carry on, the 61.% Fibo at 136.73 will also need to come into play in order to help the positive outlook to be realised. Still, the bullish intentions will not be confirmed until the pair closes above the resistance around 140 (down-trend, 200-day SMA and monthly R1).

The attitude towards the Euro has somewhat improved since the last report—the percentage of long positions open in the market went from 56% to 60%. Meanwhile, the share of the buy orders increased from 54% also to 60%.