- Nomura (based on Reuters)
The EUR/JPY cross remained relatively unchanged over Monday, adding only 18 pips. Yet again the 133.00 major level prevented the pair from climbing higher; thus, the exchange rate is likely to decline today. The weekly PP remains the immediate support at 132.74, while the Sep low should limit the losses. However, with the bank holiday in Japan, the only thing driving the Euro down is the Spanish Employment Change data. Draghi's speech later today might push the single currency beyond the Sep low, while we expect trade to close around 132.50.
Today 51% of traders are short the Euro (previously 47%). Meanwhile, the number of buy orders edged up from 45 to 53%.