EUR/JPY's outlook is strongly bearish

The fact that EUR/JPY closed beneath the lower edge of the triangle last week confirmed the bearish bias suggested by the weekly and monthly technical indicators. Now that we no longer have the up-trend, 200-day SMA and monthly PP in the way, the first main target is the September's high at 132.22, but the sell-off is unlikely to stop here. If the price dives under 132 yen, the pair will then aim for the April's low at 126.

The sentiment remains neutral: one half of the traders is long and the other is short. Meanwhile, after Thursday's shock the situation with the pending order normalised, and the share of sell orders retreated to 47% after 91% recorded last week.