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- Nomura (based on Reuters)
Pair's Outlook
Even though the EUR/JPY volatility stretched out to the 134 level, the pair still managed to rebound slightly. The resistance cluster, represented by the weekly S1 and the 20-day SMA, failed to stop the rally, but succeeded in slowing it down. Technical studies retain bullish signals, suggesting the Euro will strengthen again today. Gains should be capped by the weekly PP at 135.62, but a more reliable cluster is located around 137. However, the cross will doubtfully reach that far and most likely stabilise around 136.
Traders' Sentiment
The long/short position ratio is now equal to one. Meanwhile, the portion of orders to acquire the Euro added 15 percentage points. The orders now account for 53% of the market.
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