- Nomura (based on CNBC)
Although the EUR/JPY cross experienced substantial volatility to the upside, the pair barely managed to close above the 136.00 major level. The Euro is likely to extend its gains and appreciate again today, with the weekly pivot point now acting as the immediate resistance at 136.30. From below the single currency is supported by the monthly PP and 20-day SMA around 135.71, but exchange rate is unexpected to fall back under 136.00. Moreover, technical studies are not emitting bullish signals, bolstering the possibility of a rally.
Bulls and bears broke out of the equilibrium, as 51% of traders now have a positive outlook towards the Euro. Meanwhile, there are less purchase orders today, namely only 43% (down from 63%).