- UniCredit (based on Reuters)
Last Friday, the EUR/JPY cross edged up for the ninth time in a row, but failed to reach the initial resistance level at 135.64. Moreover, the pair's attempts to stay above the 135 level were also in vain, as the Euro stabilised at 134.55. Technical indicators retain mixed signals, while a correction is anticipated, thus; the single currency is expected to edge down against the Yen. The nearest support lies at 132.90, although the pair is more likely to close trade around the 134 psychological level.
Market sentiment worsened, as ten percentage points less (40%) of all traders are now long the Euro. Purchase orders also declined, as only 59% are now to buy the single currency (previously 75%).