- IronFX Global (based on Reuters)
EUR/JPY pair declined for a second consecutive day after encountering resistance at 134.30. However, the pair plunged more than anticipated, as it pierced through the support cluster, represented by the weekly S1 and Bollinger band. Despite that the technical indicators are giving neutral signals on the daily time frame, the single currency is still likely to rebound a bit, as a correction usually takes place after a slump.
Bullish sentiment grew stronger over the day, as now 57% of all positions are long. Meanwhile, the percentage of commands to acquire the Euro in the 100-pip range from the spot increased to 48% (45% 24 hours ago).