- CIBC World Markets (based on Reuters)
The resistance cluster failed top stop the rally at 137.60, as the European currency skyrocketed against the Yen yesterday. The session high almost reached the 139 level, but the weekly R2 still pushed the EUR/JPY cross down to 138.30. Although technical indicators retain mixed signals, we still expect the Euro to surge again. The nearest resistance rests at 138.59, represented by the weekly R2, but a hike over 139 is not out of the question. Moreover, from below the single currency is supported by the Bollinger band, which should not let the pair to decline.
Bulls broke out of the equilibrium, as 58% of traders now hold long positions. The portion of purchase orders slid form 75 to 60%.