- BNP Paribas (based on Reuters)
As was anticipated, with the improved risk sentiment, the Euro managed to edge higher against the Yen, climbing over the weekly PP at 124.20. This level is now acting as the immediate support, but technical studies are still giving bearish signals, although not as strong as yesterday. If bulls succeed in pushing the EUR/JPY cross higher, the resistance area around 125.80 is likely to keep the pair from advancing further. On the other hand, insufficient demand at 124.20 could lead to a decline towards the second support, namely the weekly S1 at 122.84.
Market sentiment slightly worsened, but is now equally divided between bulls and bears. The number of orders to acquire the European currency, on the other hand, remains unchanged, taking up 59% of the market.