- Shinchiro Kadota, Barclays (based on Reuters)
EUR/JPY plunged last Friday, topping previous day's gains. The weekly S2 failed to provide the needed support and, as a result, the single currency fell deeper, towards the monthly S3. In th end the exchange rate closed the week at 127.36. Today we may expect a correction, but the gains are likely to be limited, as the technical indicators are emitting mixed signals on the daily time-frame. The nearest resistance level is now represented by the monthly S3 at 127.42.
There are still more bulls than bears among SWFX market participants, as 55% of all positions are long. Meanwhile, the Euro is being bought in only 28% of all cases and sold in 72% of all cases.