- Nomura (based on Reuters)
On Thursday, the EUR/JPY pair exceeded expectations. Even though the cross almost reached the weekly PP support, the ultimate market reaction was to the upside. The 129.00 level was breached and the pair stabilised at 129.56, after testing the 55-day SMA. The Euro is expected to appreciate against the Yen for the fourth day today. The 55-day SMA is likely to stop the rally, although a possibility of reaching 130.00 exists. Meanwhile, technical indicators are still showing mixed signs.
Market sentiment remained unchanged, with 59% of all positions being long. The number of buy orders, on the other hand, added ten percentage points. The commands now take up 62% of the market.