EUR/JPY Fails ahead of 145 JPY

EUR/JPY Fails ahead of 145 JPY

"Despite the negative headline of the crisis, the basic promise of peace, prosperity and freedom to travel and work still have their appeal. So the process of euro enlargement has not come to an end." - Berenberg Bank (based on The New York Times)

Pair's Outlook

Pairs bulls took a step back after pushing it to the highest level in 2013 a few days back which gave the room to the bears to sell it off. At the moment it is trading slightly above the weekly S1. We expect the pair to stabilize and hover slightly above the 142 JPY mark in the nearest future. In case of an unexpected sell off strong support is around 141 JPY as well.

Traders' Sentiment

Market is becoming increasingly more bullish. Difference between the long and short positions decreased till 4% as latter ones still hold minor majority (52% vs. 48%). We expect such trend to continue as majority of pending orders, around 70%, depending on the range, are set to go long