- Yujiro Goto, Nomura (based on Reuters)
On Wednesday, EUR/JPY overshot the expectations, as it fell deeper than anticipated. The demand area at 128.44 was breached, and the pair ended the trading day at 128.08. With Japanese BSI Manufacturing Index having worse than expected figures today, the Euro started slightly rebounding against the Yen. Although technical indicators emit neutral signals, a correction is likely to persist. Nearest resistance lies around yesterday's support at 128.44; however, stronger supply is seen around 129.75.
Sentiment among traders remains unchanged, with 58% of positions being long. The number of orders in the 100-pip range from the spot price edged up by two percentage points, now amounting 35%.