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- Credit Suisse Securities (based on CNBC)
Pair's Outlook
The Euro refused to edge below the Sep low and managed to regain the bullish momentum yesterday; however, gains were limited by the 133.00 major level. Despite the rally, EUR/JPY remains in a bearish trend and is expected to edge lower again today. The Sep low is still the target, while a drop below is even more unlikely due to the level now being bolstered by the Bollinger band. Nonetheless, there is still room for the exchange rate to rise, as the immediate resistance is located around 134.50, namely the 200-day SMA.
Traders' Sentiment
The gap between short and long positions narrowed again, as 52% of traders retain a positive outlook towards the Euro (previously 54%). The share of buy orders, however, increased from 44 to 63%.
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