- Marshall Gittler, IronFX (based on CNBC)
Yesterday, the EUR/JPY cross failed to meet expectations. Even though the pair reached the predicted 127.50 level, the ultimate outcome was still positive. The 20-day SMA stopped the rally and forced the Euro to settle at 128.50. Technical indicators retain their bearish signals, suggesting another decline attempt today. The 20-day SMA is to provide strong resistance, as it has done before, and a fall towards 128.00 is the likely outcome on Wednesday.
Market sentiment among SWFX traders slightly improved, as the share of long positions rose from 57 to 59%. At the same time, the percentage of sell commands increased. They now take up 62% of the market (previously 59%).