- Mario Draghi, head of the ECB (based on WBP Online)
The Euro started this week with a rally, but the weekly outlook remains bearish. EUR/JPY tested resistance at 131.84 yesterday and then declined 190 pips. Support was at 129.85, but the cross settled below it nonetheless. Meanwhile, the technical studies are mixed, and the QE programme, which was started on Monday, is weighing on the Euro. The currency pair is thus likely to extend the losses, while the closest demand area is supposed to lie at 128.44.
Sentiment among SWFX market participants remains unchanged, with 58% of positions being long. As for the pending orders, the number of buy commands in the 100-pip range from the spot price decreased from 50 to 33%.