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- HSBC (based on Reuters)
Pair's Outlook
The EUR/JPY currency pair dropped below the 135.00 mark, with the 200-day SMA preventing the cross from falling deeper on Wednesday. The given SMA is also bolstered by the monthly and weekly PPs, which altogether are forming a rather strong support cluster and should cause the Euro to rebound on Thursday. The 20-day SMA and the weekly R1 are now forming a resistance around 135.15, but might fail to prevent further gains, as this cluster failed to hold the single currencies from moving all week.
Traders' Sentiment
Bulls regained their numbers, as 60% of all positions are now long (previously 48%). At the same time, the portion of orders to buy the single currency added two percentage points, rising up to 34%.
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