- Bank of Tokyo-Mitsubishi UFJ (based on Reuters)
The Euro started this week with a climb against the Yen. EUR/JPY rose beyond the monthly S3 and even tested the weekly PP at 128.71. Ultimately, the exchange rate closed at 128.19, and the rally keeps evolving. The gains are expected to extend, as the Japanese Trade Balance is supposed to worsen by day's end. As a result, the single currency may strengthen against the Yen even more, despite the technical indicators being bearish. Closest resistance remains unchanged, namely the weekly PP at 128.71.
The gap between the bulls and bears narrowed, as 54% of traders are long the Euro. Meanwhile, the buy/sell order ratio reached a value of one.