- Nomura Securities (based on Business Recorder)
The Euro reached the predicted target yesterday, but was then pushed back down, which resulted in breaching the support that held the given pair afloat. Ultimately, the EUR/JPY cross found support only near 135.27, namely the weekly S1. The single currency is likely to extend its declined today and settle around the 100-day SMA at 135.10. However, we should not rule out the possibility of a slight rebound, in spite of mixed technical indicators, as the weekly S1 is now strongly bolstered by the 200-day SMA.
Bearish traders keep gaining numbers, as 57% of all positions are short today (previously 55%). At the same time, the number of purchase orders dropped dramatically from 61 to 34%.