- Commerzbank (based on Reuters)
The Euro overperformed last Friday, as it pierced through the immediate resistance cluster. The EUR/JPY pair edged up for the fourth consecutive day and even stretched out to 136.50, but closed trade slightly lower at 136.40. Today, however, the cross is expected to bounce back and undergo a correction. Around 135.30 lies a strong support cluster, represented by the weekly and monthly pivot points, which should limit any losses. Meanwhile, technical indicators retain mixed signals in the daily timeframe.
Bullish market sentiment slightly improved, as 53% of traders are now long the Euro (previously 52%). The number of buy orders lost ten percentage points. They now account for 38% of the market.