EUR/JPY heads towards 130 yen

EUR/JPY is about to post a sixth day of gains in a row, and for the next 30-40 pips there are no significant resistances. The first potential obstacle is at 130.03/129.90 (weekly R2 and Bollinger band), followed by the 55-day SMA at 130.67. Meanwhile, from below, the pair is underpinned by the weekly R1 at 129.11, though this is unlikely to save the price from a strong sell-off. The monthly S1 at 128.65 is a more reliable floor in case of decline.

As for the sentiment in the SWFX market, there is still indecision—52% of open positions are long and 48% are short. At the same time, the share of buy orders within 100 pips from the spot plunged 11 percentage points to 53%.